Ford posts US$8.7bn loss

Source: Exec Digital USA

Date :7/24/2008 4:45:40 AM

Ford Motor Co suffers quarterly loss on truck slump and warns it does not expect to see a US economic turnaround until 2010.

Ford today, July 24, posted a US$8.7 billion quarterly loss as it wrote down the value of truck and SUV operations and warned that it did not expect to see a US economic turnaround until 2010.

The loss was deeper than analysts had predicted and sent Ford shares plummeting.

Ford also announced a sweeping realignment of its North American operations intended to reduce its reliance on trucks and SUVs by rolling out a range of smaller, more fuel-efficient vehicles and converting three truck plants to make cars.

Chief financial officer Don Leclair said Ford is “confident that we have enough liquidity to get through”.

Ford's net loss amounted to US$3.88 per share, in the second quarter, compared with net income of US$750 million, or 31 cents per share, a year earlier.