Ford posts $8.8 billion loss as SUV sales fall
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Thu, 24 Jul 2008 11:45:01 GMT |
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DETROIT (Reuters) - Ford Motor Co posted a wider-than-expected $8.7 billion quarterly net loss on Thursday amid declining sales of large pickup trucks and sport utility vehicles in North America.It also vowed to add new smaller vehicles to its lineup as part of a sweeping realignment in response to high gas prices. Shares fell 9 percent in premarket trading.Ford's net loss amounted to $3.88 per share, in the second quarter, compared with net income of $750 million, or 31 cents per share, a year earlier.Excluding $8 billion of one-time charges, Ford reported a loss of 62 cents per share from continuing operations. Analysts on average expected Ford to report a loss of 25 cents per share excluding one-time items, according to Reuters Estimates.The items included pre-tax impairment charges of $5.3 billion for Ford North America and $2.1 billion for Ford Motor Credit due to deteriorating economic conditions, primarily due to the shift from large trucks and SUVs.Ford, the No. 2 U.S. based automaker, reported a surprise profit in the first quarter, but later warned that a sharp shift in demand toward cars and away from large vehicles due to high gas prices would pressure its results.The company said it would convert three large truck and SUV plants to small cars beginning in December and double its production of four-cylinder engines by 2011.Ford has abandoned a longstanding goal of returning to profitability in 2009 and delayed the launch of a redesigned top-selling F-150 pickup truck by two months to sell down inventory.Shares fell 53 cents to $5.50 in premarket trading.(Reporting by David Bailey and Kevin Krolicki; Editing by Derek Caney)
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