US: Ford reduced full-year loss of nearly $ US10bn Jan. 24, 2008 |

Source: just-auto.com editorial team "Encouraged by the progress": the president and CEO of Ford, Alan Mulally "Encouraged by the progress": the president and CEO of Ford, Alan Mulally View image Ford Motor Company on Thursday reported a full year 2007 net loss of $ 2.7bn ($ 1.35 per share), a significant improvement compared to the full year 2006 net loss of 12, $ 6 billion ($ 6.72 per share). Revenue, excluding special items, rose to $ 173.9bn from $ 160.1bn a year ago.

The increase was due primarily to changes in exchange rates, price higher net and an improved product mix, the automaker said.

Tax included, Ford full-year loss from continuing operations was $ 366m, (19 cents per share) compared to a 2006 loss of $ 2.7bn ($ 1.44 per share). Excluding special items, full-year pre-tax profit from continuing operations was $ 126m, $ 3.3bn in place a year ago.

Ford said that all operations outside of the automobile in North America were profitable for the whole year, at least, before special items, and all operations of the automobile "notable improvements compared in 2006. " Special items, primarily non-cash charges associated with a Premier Automotive Group (PAG), impairment of assets (related to Volvo) and a change in practices for providing incentives to retail brokers throughout the year, reduced full-year results before tax of $ 3.9 Bn ($ 1.18 per share), which included a reduction in revenue of $ 1.4 billion. "Each of our activities is to improve the car, and we are encouraged by the progress that validates our strategy and plan," said chairman and CEO of Ford, Alan Mulally. Q4 Ford posted a fourth quarter 2007 net loss of $ 2.8 billion ($ 1.30 per share), a significant improvement over the $ 5.6bn ($ 2.98 per share), lost in the same period of 2006. In the fourth quarter, the pre-tax loss was $ 620m, an improvement of $ 1.3 billion. In the fourth quarter, earnings, excluding special items, was $ 45.5bn, up from $ 40.3bn a year ago, mainly because of currency gains, the net increase in prices and an improvement in volume .

Ford in the fourth quarter, after-tax loss from continuing operations, excluding special items, was $ 429m (20 cents per share, compared with the year 2006 after-tax loss of $ 2 billion ($ 1.03 per Action). As with the full year results, special items reduced Q4 results before taxes - in this case by $ 3.9bn ($ 1.10 per share), which included a reduction in revenue of 1.4 billion dollars. Again, as for the whole year, these were primarily non-cash charges associated with an impairment of assets CPA (linked to the Volvo) and a change in the retail trade of incentives for brokers .

Automotive For the full year, Ford automobile sector in the world reported a pre-tax loss of $ 1.1 billion, compared to a pre-tax loss of $ 5.1bn a year ago. The automaker said the improvement primarily reflects the higher net prices, lower costs and favorable model mix, partially offset by an unfavourable exchange rates, and higher net interest costs. Cars posted a pre-tax loss of $ 889m for the fourth quarter, compared to a pre-tax loss of $ 2.3bn a year ago. The world automotive revenue for 2007 was $ 155.8bn, $ 143.3bn compared to a year ago. Q4 revenue was $ 40.8bn, compared with $ 36.0bn. Total wholesale company vehicle in 2007 were 6553000, compared with 6597000 units in 2006.

Fourth quarter wholesale vehicle were 1643000, 1568000 against. Automotive operations in North America reported a full-year pre-tax loss of $ 3.5bn, compared with a loss of $ 6.0bn in 2006. Revenue was $ 70.5bn, an increase of $ 69.4bn. The Q4 pre-tax loss of $ 1.6bn was an improvement over the $ 2.7bn lost a year ago. Revenue was $ 17.0bn, an increase of $ 15.1bn. South America and Ford Europe operations both reported substantial improvements as regards pre-tax profit for the full year while the Premier Automotive Group (PAG) has posted a full year pre-tax profit of $ 504m, compared with a loss of $ 344ma year earlier.

"The improvement was more than explained by cost reductions in all brands, the growth in volume and higher net price Land_Rover, partially offset by an unfavourable exchange rate and adverse mix , "Ford said in a statement.

Volvo unspecificed suffered a loss for the full year. In full-year revenue for PAG was $ 33.2bn, compared with $ 30.0bn in 2006. PAG reported Q4 earnings of $ 59m, compared with $ 174m for the same period a year ago, the automaker said, "was more than explained by Volvo, primarily reflecting adverse exchange rates, the mix products, and non-recurrence of a one-time profit impacts included in the results for 2006 ". Within PAG, Volvo has been breaking even, combined with the Jaguar and Land Rover operations accounting for profit. PAG income for the quarter was $ 9.0bn, compared to $ 8.6bn a year ago.

Asia-Pacific and Africa operations greatly improved over the year, posting a pre-tax profit of $ 40 million, compared to a pre-tax loss of $ 185ma year earlier. "[This] reflects primarily the performance and favorable cost of net revenues, and an increase in profits from our Chinese joint ventures, partially offset by mixing and unfavourable exchange," said Ford. In full-year revenue was $ 7.0bn, compared with $ 6.5bn in 2006. Ford earned $ 204m of Mazda and associated operations, compared with $ 168m in 2006. However, "other motor vehicles", which consists of interest and costs related to financing, accounted for a full year loss before tax of $ 547m, compared to a pre-tax profit of $ 247m in 2006. Ford said the fall was mainly due to the non-recurrence of last year's tax-related interest income of about $ 670m, and higher net interest expense associated with financing implemented during the fourth quarter of 2006 .

For the full year, the financial services sector earned a pre-tax profit of $ 1.2 billion, compared to a pre-tax profit of $ 2.0bn in 2006. Ford Motor Credit reported net income of $ 775m in 2007, down from revenue of $ 1.3 billion a year ago. Earnings before income taxes of $ 1.2 billion were in 2007, down from $ 738m from 2006. Ford said the fall was due to the non-recurrence of credit loss reserve reductions, borrowing costs higher depreciation costs higher for leased vehicles and higher costs as a result of changes are made in the North American business. Perspectives "Although our operations are improving the car for one year at the base, the American economy is slowing and the outlook for the automotive industry remains difficult," said Mulally. "To help ensure that we are able to deliver our commitments despite the difficult external environment, we will take other measures to reduce costs in North America, including enterprise-wide UAW buyouts. "In addition, we will continue to speed up the flow of new products, reducing the complexity of the vehicle, and adjust production to the changing business environment." Reports in the United States this week, said Ford, as part of its recent agreement with the UAW, planned to axe more 13000 jobs in North America.