Ford Motor Co loses 8.7 billion dollars in second quarter
US automotive concern Ford Motor Company reported Thursday
that it lost 8.7 billion dollars in the second quarter of 2008 amid writedowns
in the value of its assets and announced it would speed up its move toward more
The Dearborn, Michigan-based company said the losses of 3.88 dollars per share compared with a net profit of 750 million dollars, or 31 cents, in the second quarter of 2007. Excluding one-time expenses the loss was 1.4 billion dollars, or 62 cents per share, Ford said.
Revenues fell 13 per cent to 38.6 billion dollars, in part on the sale of the Jaguar and Land Rover brands.
Sales remained strong in Europe, where Ford earnings doubled to 582 million dollars, and in South America, where profits rose to 388 million dollars up from 255 million dollars.
The company said it focus on shifting the production of several additional plants in the United States and Mexico to small cars away from petrol-guzzling sport utility vehicles beginning in December. It also plans to bring several of its smaller cars that are popular in Europe the United States.
"We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment," Ford chief executive Alan Mulally said in a statement. Ford is moving aggressively using our global product strengths to introduce additional smaller vehicles in North America and to provide outstanding fuel economy with every new product."
The loss reflected some 8 billion dollars' worth of writeoffs from the decline in the value of its assets in North America and of the lease portfolio of the Ford Motor Credit Company, a statement said.
The latest red-ink figures come shortly after Mulally said Ford was giving up its hope of returning to the black again next year, dpa reported.