Ford reports $14.6b net loss in ?08

[SVT666]

Ford reports $14.6b net loss in ?08

Despite a $14.6 billion net loss last year, Ford Motor Company says it?s not planning to seek federal aid quite yet, unlike crosstown rivals General Motors and Chrysler LLC. As analysts predicted, Ford also reported a $5.9 billion loss during the fourth quarter of 2008 - and the automaker says it used $5.5 billion in cash during the rough final quarter of last year.

The challenging fourth quarter leaves Ford with $13.4 billion in gross cash, for a total of $24 billion available in liquidity, though independent analysts and Ford executives are still optimistic.

?Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results,? Ford CEO Alan Mulally said.

?We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds.?

Ford will cut 1,200 jobs at Ford Credit in an effort to continue reducing operating costs. Ford, like GM, has also reached an agreement with the UAW to cut the costly union jobs bank, even though Ford is not bound to the same federal requirements to negotiate with the UAW that GM and Chrysler are. Ford?s fellow Detroit automakers are mandated to seek worker concessions as a part of their federal loan agreements.

?We believe Ford will benefit from any union concessions,? said analyst Eric Selle of JPMorgan in an interview with the Detroit News.

The automaker gained market share late in 2008 and says it expects to continue the trend despite plunging sales. Overall sales were down 20.5 percent last year, a bit ahead of the industry drop of 18 percent.
Analysts also agreed that Ford?s outlook isn?t as bleak as the fourth quarter losses might lead those outside of the industry to believe.

We also expect Ford to post better results over the next 6 months than GM due to its flat North American sequential production,? Selle said. ?Further, Ford?s operating model involves fewer brands, dealers and plants, thus should be easier to restructure.?

[3.0L V6]

Hopefully the worst is over.

I wonder what GM's numbers will be like?

[r0tor]

Fords new line-up can't hit the dealer lots soon enough for my shareholding hands