Ford Motor Company will break out earnings of its Premier Automotive Group of luxury brands and its Asia-Pacific operations in response to investors’ call for more transparency in its financial reporting, according to Automotive News Europe.
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The decision, effective with first-quarter results due April 16, exposes what is suspected to be one of the car maker’s most troubled units to investor scrutiny for the first time.
Results for PAG, consisting of Jaguar, Volvo, Land Rover and Aston Martin, have been buried in results for Ford’s European operations since the group was created in early 1999.
The results will be reported on a group basis, not by company, and will not begin being compared with the year-earlier period until the first quarter of 2004, a Ford spokesperson told Automotive News Europe.
Despite strong US unit sales for PAG last year, the group is assumed to be unprofitable.
At the Paris motor show last September, Ford COO Nick Scheele stunned investors when he said Jaguar Cars would post a previously unsuspected loss of $US500 million (Euro 458.9 million) for the fourth quarter.
Ford wants PAG to lead an earnings turnaround this year, to 70 cents a share on an operating basis from last year’s 47 cents, and generating one-third of Ford’s global operating profits by mid-decade, Automotive News Europe’s report said.
