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
No need to be so testy. If you don't know, simply say so.
Did you post earlier this month about your good luck with Nissan Titans for a business?
"Did you post earlier this month about your good luck with Nissan Titans for a business?"
No, but I do recall someone that did post something to that effect. Along those line I do see a few more Titans used as fleet vehicle around here in what is a solid Ford/GM stronghold. I am very curious how Toyota with the new Tundra being built here in Texas will do too. I've read that Toyota has really tried hard to market the fleet buyers with a W/T version of the Tundra.
They have provided a link. I posted the AFA page at #106. If that link doesn't work, then go to the page itself. I believe it is http://www.boycottford.com
I would have been on that distribution list and I never received that e-mail. I am very doubtful as to its origin. Keep in mind that I am not stating anything directed at you, I am only letting you know my own, direct knowledge regarding that e-mail.
I followed the links and they went to a "progressive" political site that does indeed call "same sex" issues "marriage discrimination."
As you point out, I did not write the AFA page.
Well, it was the biggest vehicle mistake of my life. It was in the shop 7 times befor 16k miles. Including head gaskets, new tranny and fuel injectors. I finally bit the bullet and traded it in for a GMC.
I had every trip to the shop documented, every phone call documented. No one at Ford cared. Through all my phone calls, they would never let me talk or speak to a supervisor.
I wouldn't lose any sleep if they went belly up.
I'm not questioning that link, I'm simply questioning the validity of that e-mail originating at FoMoCo. I did not receive it and I would have been on that specific dist. list that the AFA references.
Just so you know, as of June 2006, the Ford benefits package no longer covered "same sex household partners" (or some similar wording.) So progress is being made.
UAW. Nuff said.
You report good things. Why don't you send them to AFA?
Sadly, I had sent the benefits change to them. However, I never saw anything and I haven't received a response. That is what makes me a little dubious about their true intentions.
I talked to Wildmon once, on the phone at his house. I was surprised to get through. He was very gracious.
Both of us are Methodist elders; that might have made a difference.
It's been a decade, though.
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