Ford Australia has announced an after-tax operating loss of A$141m for the 2012 financial year. This followed a loss of $290m in 2011 and took losses in the last five years to about A$600m. Ford said it would close its Australian manufacturing plants and expand its vehicle lineup by 30% by 2016 to return to profitability.
“The loss was a result of the re-alignment of the company’s business in November 2012,” the automaker said.
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“During this time, production changed from 209 vehicles per day to 148 vehicles per day in a direct response to changing customer preferences, which have driven a continued industry-wide decline in the sale of large vehicles. As a result, Ford has impaired its asset base by $143m.”
Chief Financial Officer Mark Rearick noted that the financial results mirror the restructure. “We had a 30% reduction in volume at the end of last year, and our financial results reflect that we had to re-value our asset base by a corresponding amount, accounting for the loss,” he said.
