Ford posts worst-ever result in a quarter
Loss is $8.7B; firm will focus on small cars, fuel efficiency
The performance is a consequence of slumping sales, especially of trucks, in a sour U.S. economy with $4-a-gallon gasoline, as well as rising material costs.
Last year during the same period, Ford reported a net profit of $750 million, or 31 cents a share.
Revenues during the April-June period declined to $38.6 billion, down from $44.2 billion a year ago.
The second-quarter loss includes $8 billion, or $3.26 a share, in special charges, mostly in North America, which has been hit hard by an economic slowdown, a consequence of crises in the housing, credit and energy sectors.
Ford's operating loss from continuing operations, excluding special items, was $1.4 billion, down from a year-ago profit of $258 million.
During the quarter, Ford's cash reserves also decreased by $2.1 billion, to $26.6 billion.
Following Ford's $100-million profit in the first quarter, Ford has now lost $8.5 billion through the first half of the year.
At the same time, the company outlined an updated revival strategy that includes:
• Converting three large truck and SUV plants to small car factories. Retooling begins this December.
• Upgrading the Ford, Lincoln and Mercury lineup almost completely by end of 2010.
• Doubling hybrid vehicle production and lineup in 2009.
• Doubling capacity for North American four-cylinder engines by 2011.
• Ford also plans to be the best or among the best in fuel economy.
You can be the first to comment on this story.