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Ford loses $5.8B in 3Q


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This is quite a convergence of bad Ford news opportunities for the media to exploit. The Taurus cancellation is seen as the demise of Ford and now a massive loss...let the blood letting begin! I think we all know the next 12 months or so are going to be VERY bad months for Ford. It's like chemotherapy, Lets hope they come out if it with renewed life!

Edited by Edgey
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Nope, only 5.8 billion...can you try to be closer next time?

 

What'll probably hurt more than the earnings report is the restatement of earnings back to 2001. This will hammer the stock price, assuming there's still room to sink.

 

Every time earnings are restated, I wonder why they don't go back to executives who earned bonuses based on the inflated results and get a partial refund. Of course this never happens.

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I love how there are always press releases about how great Ford's products are the day they announce bad news...

 

I was wrong. they never lost 6 million>

 

Quote Bluecon Sept. 21 2006

"If Chrysler will lose 1.5 billion what will Ford lose?

 

I guess a minimum of 6 billion"

 

Be fair, only 1.8 Billion was actual losses, the rest was restructuring costs. From that perspective DCX barely outpaced Ford.

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I love how there are always press releases about how great Ford's products are the day they announce bad news...

Be fair, only 1.8 Billion was actual losses, the rest was restructuring costs. From that perspective DCX barely outpaced Ford.

1/ It is 5.8 billion in losses no matter how you slice it.

2/ DCX made a profit.

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What'll probably hurt more than the earnings report is the restatement of earnings back to 2001. This will hammer the stock price, assuming there's still room to sink.

 

Every time earnings are restated, I wonder why they don't go back to executives who earned bonuses based on the inflated results and get a partial refund. Of course this never happens.

Not necessarily:

 

"Although the final restatement amounts have not yet been determined, we estimate based on the information to date that Ford and Ford Motor Credit Company's results in 2002 will improve materially. Other periods are still under study."

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And to think this time last year I was actually trying to buy a new Mustang GT and had my name on the dealer's list for a Shelby GT500. Both deals went sour because of dealer greed (Shelby GT500) and Ford's inability to build me a car like I wanted (Mustang GT).

 

Ford is bleeding to death and there is not a tourniquet big enough to stem the flow. How many $5.8B deficits can you take before they pull the plug? Consumer confidence in Ford is at an all-time low. How many buyers are going to sink their earnings into a new car that the manufacturer may not be around to stand behind in 2 years?

 

Ford better start looking for another manufacturer to pardner up with (i.e. GM or Renault) before its too late.

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Be fair, only 1.8 Billion was actual losses, the rest was restructuring costs. From that perspective DCX barely outpaced Ford.

 

While I understand what you are saying, I believe that these restructuring costs is just time catching up with FoMoCo. All the corner cutting savings, postponed design changes, and overall product shortsightedness of yesturday are all represented in those restructuring costs today.

 

Pay now or pay later. Ford decided to pay later, here it is - with interest. A good lesson for all business people.

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In another article, it says the following:

 

"Dearborn-based Ford's turnaround plan aims to cut $5 billion in costs by the end of 2008 by slashing 10,000 white-collar workers and offering buyouts to all of its 75,000 unionized employees."

 

 

5 billion in cost savings at their current pace of 1+ billion a quarter in automotive operations loss will only have them breaking even. They don't plan on being profitable until 2009.

 

I feel sorry for anyone who works for Ford. I know they have a very scetchy policy of who they hire and we know they cannot design products worth a crap so I cannot see how low profit margin vehicles like the Fusion can turn this company around. Ford can't sell their cars at full price so I don't care how many costs they cut, they cannot sell many vehicles at the margins they did in the 90's so at best, if Ford becomes profitable again, they will be a low profit company. You will not be seeing 1.5 billion a quarter like the 90's.

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I feel sorry for anyone who works for Ford. I know they have a very scetchy policy of who they hire and we know they cannot design products worth a crap so I cannot see how low profit margin vehicles like the Fusion can turn this company around. Ford can't sell their cars at full price so I don't care how many costs they cut, they cannot sell many vehicles at the margins they did in the 90's so at best, if Ford becomes profitable again, they will be a low profit company. You will not be seeing 1.5 billion a quarter like the 90's.

 

 

Low Profit Fusion? They make more $$$ on Fusion they do with a Mustang :rolleyes:

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Low Profit Fusion? They make more $$$ on Fusion they do with a Mustang :rolleyes:

People continue to say what a great profit maker the Fusion is.

It is often posted in BON with never anything to back up the statement.

Where does the info on Ford profits for each model come from? Link?

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People continue to say what a great profit maker the Fusion is.

It is often posted in BON with never anything to back up the statement.

Where does the info on Ford profits for each model come from? Link?

 

 

People continue to say what a LOW profit maker the Fusion is.

It is often posted in BON with never anything to back up the statement.

Where does the info on Ford profits for each model come from? Link?

 

In another article, it says the following:

 

"Dearborn-based Ford's turnaround plan aims to cut $5 billion in costs by the end of 2008 by slashing 10,000 white-collar workers and offering buyouts to all of its 75,000 unionized employees."

5 billion in cost savings at their current pace of 1+ billion a quarter in automotive operations loss will only have them breaking even. They don't plan on being profitable until 2009.

 

I feel sorry for anyone who works for Ford. I know they have a very scetchy policy of who they hire and we know they cannot design products worth a crap so I cannot see how low profit margin vehicles like the Fusion can turn this company around. Ford can't sell their cars at full price so I don't care how many costs they cut, they cannot sell many vehicles at the margins they did in the 90's so at best, if Ford becomes profitable again, they will be a low profit company. You will not be seeing 1.5 billion a quarter like the 90's.

 

 

fusion is being sold at pretty close to retail price, you can get 1k rebate, thats it... probably alot better than a 2005 GTP. lol

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---What fantastic news, I mean this news should bring new hope to Ford, this loss only cements the fact that they are spending the nessecary amount of money to turn the compan around. All you nay sayers are really clueless..............................

 

 

Sorry I catched the RichardJensen disease now I can only spin terrible news into great news. :confused:

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---What fantastic news, I mean this news should bring new hope to Ford, this loss only cements the fact that they are spending the nessecary amount of money to turn the compan around. All you nay sayers are really clueless..............................

Sorry I catched the RichardJensen disease now I can only spin terrible news into great news. :confused:

 

 

well, this was expected... really for anyone who has been paying attention, this really isnt new news...

 

anyways, cut away the charges.. it was 2billion in sales... bad, but the media will say, omg they lost 5billion in sales...

 

but... what makes me think rut ro is.. they said they expect the larger chunks of restructoring to happen next year? doh.. now that makes you say hmmmmmm... not cool, sales need to pick up.. eh, doing my part, bought a new fusion in august, got 4 people too buy fords this year too.

Edited by MGallun
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well, this was expected... really for anyone who has been paying attention, this really isnt new news...

 

anyways, cut away the charges.. it was 2billion in sales... bad, but the media will say, omg they lost 5billion in sales...

To get to the point I honestly am not too upset with the news because GM went from a Huge change in quarter four of 2005 to quarter one of 2006.

 

The problem is GM has a better portfolio of upcoming launches for next year for has really nothing new everything seems pushed back till 2008-2010 so the next few years will be hell.

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To get to the point I honestly am not too upset with the news because GM went from a Huge change in quarter four of 2005 to quarter one of 2006.

 

The problem is GM has a better portfolio of upcoming launches for next year for has really nothing new everything seems pushed back till 2008-2010 so the next few years will be hell.

 

 

i just dont understand this statement... what exactly is so brand new and great about GMs ucoming stuff?

 

and saying for has nothing is rather odd.. considering a new Escape\Mariner next year, a freshed and uppowered 500 next, redid foci next year, edge.. lincoln and mercury counterparts etc...

 

what exactly goes gm have?

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Did anybody hear Mulally announce the loses? This guy does not engender confidence, especially when he sounds just shocked and surprised like a regretful father of a misbehaving teenager. He sounds like he's apologizing for his company’s misbehavior. Of course we know it's 'unacceptable'! This could have been spun a lot better than it has been.

Edited by Edgey
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This begs the question, what the hell happened 14 years ago at Ford when they had a worse quarterly report???

 

I know the country was in a recession, but a loss like this suggest there was more wrong then just that.

 

To keep a positive outlook on this, Ford made $27 Billion 5-6 (1997-98) years after this.

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