Ford has reported a net loss for the third quarter of $284 million, Ford’s first loss since Q4 2003. Excluding special items, it lost $191 million on continuing operations. These results compare with net income of $266 million in the third quarter of 2004.
Automotive operations saw a loss of $1.341 billion in the quarter, while Ford’s financial services saw net revenue of $1.138 billion.
Of that automotive loss, $1.070 billion was in the Americas. Ford’s Asia Pacific and Africa operations netted $133 million, although the company continued to post losses in Europe and with the Premier Auto Group of $163 million.
Despite the third-quarter net loss, Ford remains in the black for the year as a whole, while GM has lost about $3.8 billion through the first nine months of the year.
As our results indicate, we face many challenges in this competitive and difficult environment. We have demonstrated throughout the year that we will continue to take the actions necessary to return our core business to sustainable profitability. We understand the issues, our priorities, and have the right team in place to get the job done.—Chairman and CEO Bill Ford
Actions taken in the third quarter designed to improve the financial situation, according to Ford, include:
Finalization of the Visteon agreement.
An agreement to sell The Hertz Corporation.
The introduction of new supply base consolidation initiative
Announcement of the Company’s innovation initiative, including a tenfold increase in annual hybrid vehicle production by 2010.
The launch of Ford Fusion, Mercury Milan and Lincoln Zephyr in North America. Fusion and Milan are destined to be Ford’s first hybrid sedans. (Earlier post.)
Premier Automotive Group reveal of Volvo C70 and Jaguar XK.
Roll-out of Ford Focus in Asia Pacific.
Ford will announce a restructurin program in January for its North American operations that will include, according to Bill Ford, “significant plant closings where facilities don’t fit our strategy moving forward.”
|Ford Third Quarter 2005 Select Results|
|Entity||Net income ($ Million)||% Change|
|3Q 2004||3Q 2005|
|Global Automotive Operations (Total)||-609||-1,341||-120%|
|Asia Pacific Africa and Mazda||48||133||177%|
|Ford Financial Services||1,391||1,138||-18%|