Ford has posted a $5 billion loss for the fourth quarter of 2001, although that mammoth figure includes a $4.1 billion restructuring charge (‘revitalisation plan’ outlined last Friday). Excluding that charge, the operating loss is put at $860 million – pretty much in line with most analysts’ expectations.
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In the same period of the previous year, Ford posted a $1.1 billion profit.
For 2001 as a whole, Ford lost $5.45 billion – it is the first annual loss since 1992. In 2000, the company made a profit of $3.5 billion.
Worldwide automotive operations lost $1.96 billion in 2001, compared to a profit of $4.88 billion a year ago. Worldwide automotive revenues were $131.53 billion, a decline of 7 percent from $141.23 billion a year ago.
“This was a challenging, difficult year for the Ford Motor Company and our financial performance was unacceptable,” said Chairman and CEO Bill Ford. “As outlined in our revitalisation plan, we are committed to regaining our momentum and getting back on track. The difficult actions we announced last week will focus us on designing, building and selling the industry’s best cars and trucks – and restoring the company’s profitability.”
In a statement, the company said that the ‘full-year loss before unusual items primarily reflects lower volume in North America, significantly higher marketing and product costs, customer satisfaction initiatives, as well as increased credit losses at Ford Credit.’
Ford announced a massive reorganisation of operations last week – which will ultimately see the auto giant close five plants – aimed at improving profits by $9-billion by the middle of the decade. A total of 35,000 jobs are to be cut worldwide.
“Although the U.S. economy continues to be uncertain, we estimate total vehicle demand will be about 15.5 million units,” said Nick Scheele, Ford president and chief operating officer. “Our North American production forecast calls for making 1,050,000 cars and trucks in the first quarter. This is down three percent from 1,078,000 in the 2001 first period.
“For Ford Motor Company, 2002 will be a year of transition as we concentrate on implementing our revitalisation plan,” Scheele said.
