Ford swims in red ink
January 25, 2007

Ford Motor Co. suffered its worst financial year in its 103-year history in 2006.

Announcing earnings for 2006 this morning, Ford reported it lost $12.7 billion for the year. In the last quarter of the year alone, the company lost $5.76 billion. The losses were worse than even pessimistic analysts predicted.

And company executives said they see no improvement early this year. They predict U.S. market will continue downward through the third quarter of 2007, because of lower sales to rental car fleets. Plus, Ford has cut North American vehicle production to be more in line with its lower sales and market share.

Analysts see no turnaround until 2008. Ford itself expects no turnaround in North American operations until 2009.

With former Boeing executive Alan Mulally at the helm, Ford has said it will accelerate job cuts and plant closings. About 10,000 salaried jobs – a third of the salaried work force – are gone by the end of this quarter. Nine North American factories will close by next year and seven more by 2012.

—Michelle Krebs

Posted by Michelle Krebs at 6:14 AM under Business , Companies | Comments (0) | digg this | Seed Newsvine