Posted on 01/24/2007 5:37:16 PM PST by Flavius
DETROIT (AP) -- Ford Motor Co. could post the worst annual loss in its storied 103-year history when the automaker releases its 2006 earnings on Thursday.
The old record net loss was $7.39 billion in 1992, but through three quarters of this year, Ford already had lost $7 billion.
Fourteen analysts polled by Thomson Financial expect more red ink in the fourth quarter, predicting an average quarterly loss of $1.01 per share and $1.35 per share for the year, excluding special items.
"The fourth quarter's going to look real ugly," said Erich Merkle, director of forecasting for the auto consulting company IRN Inc. in Grand Rapids, Mich. He predicted Ford would get as much bad news out of the way as it can for the end of 2006, beating the 1992 record.
"Let's just air all our dirty laundry all at once. Take the medicine and then we can move on. I definitely think that's their philosophy, knowing it's going to be real poor," Merkle said.
Burnham Securities analyst David Healy said in a note to investors that Ford has yet to recover from its finances being wrecked by collapsing sales of its F-series pickup trucks and truck-based sport utility vehicles.
The company made a profit of $1.44 billion in 2005, and in the fourth quarter of that year, it produced and shipped 355,000 of the high-profit large and mid-sized truck models, Healy said. That dropped by 40 percent to 213,000 in the final quarter of last year, he said.
"In our view, most of the year-to-year increase in losses lies in the 142,000 year-to-year decline in these high-profit models," Healy said.
Production of other Ford models dropped by 53,000 in the fourth quarter of last year compared to the last quarter of 2005, driven by dealer stock reductions and the company's strategy to reduce traditional low-profit sales to rental car companies, Healy said.
Efraim Levy, senior industry analyst for Standard & Poor's, predicted Ford would post a $2 billion net loss for the last quarter of 2006.
Like other analysts, he sees bottom-line improvement in 2007 even though he predicts revenues will drop by 7 percent compared to 2006. He still sees a loss for this year, but said the improvement will come as Ford becomes more efficient and cuts costs by slicing its blue- and white-collar work forces.
About 38,000 hourly workers have signed up for buyout or early retirement offers from the company, and Ford plans to cut its white-collar work force by 14,000 with buyouts and early retirements.
The company has mortgaged its assets to borrow up to $23.4 billion to fund a massive restructuring plan and cover billions in losses expected until 2009. It expects to burn up $17 billion in cash during the next two years before returning to profitability.
Ford's revenue will continue to suffer in 2007 from intense competition, an expected lower overall auto market and weakness in Ford's financial services business, Levy said.
Ford has rolled out or will introduce several new or updated products during 2007, including the Edge crossover, new F-series Super Duty pickups, a redesigned Focus small car and an updated Five Hundred larger sedan.
But Levy said the company's new vehicles won't be strong enough for it to recover much this year.
"The new products aren't that exciting overall," he said.
Ford's sales last year were 8 percent below 2005 figures at about 2.9 million vehicles. Ford attributed the decline to a drop in truck and sport utility vehicle sales and the end of production for the Taurus sedan, which largely was sold to fleet buyers last year.
Ford is the first of the Detroit-area automakers to release its earnings for the year. General Motors Corp., which lost more than $3 billion in the first nine months of last year, will release its fourth-quarter and annual earnings on Tuesday.
DaimlerChrysler AG, which lost $1.5 billion in the third quarter, is to release its earnings on Feb. 14.
Ford Motor Co.: http://www.ford.com
(In fact, I have worked for their Japanese competition - but I DO care about the truth, unlike many people here)
That can't happen unless they crack their union wage scales, and sluff off their accrued health care liabilities to the Feds. The company is a very sick and near terminal puppy, if BOTH of those don't happen.
What does the word UPDATE suggest to you?
There is a library of collected material represented by that website. It has been collected since BEFORE the boycott was launched. (That's what UPDATE should suggest to you.)
Show me item for item the matching offense from each other manufacturer.
You need to calm down.
Someone asked if you were an employee of Ford or had some other similar connection to them. Do You?
How did auto economics get conflated with religion?
The airlines have forced a series of wage and benefit cuts.
Their argument is simple: You can have your $100 and hour package turn to $0 an hour when we go out of business,
OR
You can have a lower $50 and hour package, which is still a great wage in American, and a job.
Zero or Fifty....which is it?
We will soon find out. But Ford without exciting products also needs out of its health care benefit problem. Toyota has better cars dollar for dollar, with much younger workers, earning lower wages in the South, that are not unionized. That is a horrific beast for Detroit with which to cope.
That was cold.
Now that's very cold....
If you have any accusations about my history, bring them.
Until then, shut your trap.
What you've provided is just a few ads. AFA is targeting an entire range of activity by Ford. You have just begun to scratch the surface.
You want to know why Ford was the one chosen. AFA says that over the years, their support of the gay AGENDA is most egregious.
Show where others are as egregious as the compilation provided by AFA. We have a Ford plant in our area. I would like to be able to support them.
In the past I've owned Falcon, Pinto, Fairmont, Mustang.
But, not until they relent.
Tough.
My personal boycott began with this clown. It strengthened with the gay friendly crap. I have owned a Ford before and it was a good product. But now, screw 'em.
I've provided you with links to Toyota's support of gay organizations. I've provided you with links to ads every bit as egregious as Ford's. If you did a simple google search you'll find DaimlerChrysler and GM supporting the same organizations that you're accusing Ford of supporting. I could do it for you, but why? It is clear you won't pay attention.
AFA chose Ford not because they are the most egregious. They chose Ford because they needed a weak target after failing miserably. Their past boycotts on Disney and P&G sure worked, huh? That one on Walmart certainly had little effect (the NGLCC is still thanking Walmart for support as a "corporate visionary").
I don't see that there's any point in digging up more evidence for you, as you've ignored all that has been given, deciding to believe Wildmon instead. Do some research yourself. Believe me, you'll be better off for it. You may choose to continue to boycott Ford, and it is your right. But you won't be believing they are any more "egregious" in their support. You should ALWAYS question what people are telling you and verify things before jumping on a bandwagon.
(BTW, if you've owned a Falcon, Pinto, Fairmont, and Mustang in the past, odds are your joining the boycott is making VERY little difference to Ford, as the Mustang is the only one of your list that has even been built in the past quarter century)
Umm... Nasser was fired awhile back....
Ford is the Edsel of car companies.
Buick isthe biggest selling brand in China.
Illogical. It demonstrates I'm a past and relatively recent customer.
You cannot match the data of AFA item for item. That means you have lost the exchange, and AFA's analysis for why Ford has been boycotted has not been refuted.
Good reason. That's racist.
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