Ford’s net loss for the quarter was only $129m, but special items worth $2.2bn related to its healthcare settlement with the United Auto Workers union muted the true extent of the decline.
Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts
Friday, November 7, 2008
Ford Burns Through $7.7 Billion in 3Q
Ford Motor reported this morning that it had burned through $7.7bn of cash over the last quarter.
Ford’s net loss for the quarter was only $129m, but special items worth $2.2bn related to its healthcare settlement with the United Auto Workers union muted the true extent of the decline.
Ford’s net loss for the quarter was only $129m, but special items worth $2.2bn related to its healthcare settlement with the United Auto Workers union muted the true extent of the decline.
Monday, August 25, 2008
Ford Shares at 22-year Low
Ford shares slipped 6 cents, or 1.3 percent, to $4.41. In earlier trading, the stock bottomed out at $4.25, its lowest trade since Feb. 10, 1986, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.
Ford's stock fell as oil prices moved t higher. Light, sweet crude rose 44 cents to $115.03 a barrel on the New York Mercantile Exchange.
Ford's stock fell as oil prices moved t higher. Light, sweet crude rose 44 cents to $115.03 a barrel on the New York Mercantile Exchange.
Thursday, July 24, 2008
Ford Posts $8.7 Billion Loss on Write-Downs
The Ford Motor Company reported today that it lost $8.7 billion in the second quarter as it wrote-off $8 billion in assets and as sales of its most profitable vehicles plunged.
The loss, equal to $3.88 a share, included write-downs of $5.3 billion on Ford’s North America assets and $2.1 billion on the lease portfolio of the Ford Motor Credit Company.
The company lost $1 billion from continuing operations, with $600 million of that amount attributable to North America.
“While we have no intention of giving up our longtime truck leadership, we are creating a new Ford in North America on a foundation of small, fuel-efficient cars and crossovers,” Mark Fields, the president of Ford’s Americas division, said in a statement.
Ford said it would retool a sport-utility vehicle factory in Michigan and begin making compact cars there in 2010. An S.U.V. plant in Kentucky will start building small cars in 2011. The company has already announced plans to build a new subcompact car, the Fiesta, at a former truck factory in Mexico.
A plant in St. Paul, Minn., that was scheduled to close next year will stay open through 2011 to continue building the Ford Ranger, a compact
The loss, equal to $3.88 a share, included write-downs of $5.3 billion on Ford’s North America assets and $2.1 billion on the lease portfolio of the Ford Motor Credit Company.
The company lost $1 billion from continuing operations, with $600 million of that amount attributable to North America.
“While we have no intention of giving up our longtime truck leadership, we are creating a new Ford in North America on a foundation of small, fuel-efficient cars and crossovers,” Mark Fields, the president of Ford’s Americas division, said in a statement.
Ford said it would retool a sport-utility vehicle factory in Michigan and begin making compact cars there in 2010. An S.U.V. plant in Kentucky will start building small cars in 2011. The company has already announced plans to build a new subcompact car, the Fiesta, at a former truck factory in Mexico.
A plant in St. Paul, Minn., that was scheduled to close next year will stay open through 2011 to continue building the Ford Ranger, a compact
Tuesday, July 22, 2008
NYU Prof: General Motors, Ford Could Go Bankrupt
General Motors Corp. and Ford Motor Co. could go within five years, according to Edward Altman, a finance professor at New York University's Stern School of Business, Bloomberg is reporting.
"Both are in very serious shape and the markets reflect that,'' Altman, the creator of the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television. The model shows that these companies are ``on the verge of bankruptcy," he said.
The Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, though GM is in slightly worse condition than Ford, Altman said.
"The thing that triggers a default in almost all cases is running out of cash and not being able to refinance,'' Altman told Bloomnerg."You're not going to go bankrupt as long as you can refinance short-term liabilities. You will go bankrupt if you can't."
GM Chief Executive Officer Rick Wagoner said in an interview July 15 that the company has the ability to raise cash, and he called bankruptcy ``a bad idea.'' Ford has said it had access to $40.6 billion in funds as of March 31, including credit lines.
"I would not put money with GM right now because the downside is so great relative to the upside, relative to the yield,'' said Altman, speaking in New York. ``Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor."
"Both are in very serious shape and the markets reflect that,'' Altman, the creator of the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television. The model shows that these companies are ``on the verge of bankruptcy," he said.
The Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, though GM is in slightly worse condition than Ford, Altman said.
"The thing that triggers a default in almost all cases is running out of cash and not being able to refinance,'' Altman told Bloomnerg."You're not going to go bankrupt as long as you can refinance short-term liabilities. You will go bankrupt if you can't."
GM Chief Executive Officer Rick Wagoner said in an interview July 15 that the company has the ability to raise cash, and he called bankruptcy ``a bad idea.'' Ford has said it had access to $40.6 billion in funds as of March 31, including credit lines.
"I would not put money with GM right now because the downside is so great relative to the upside, relative to the yield,'' said Altman, speaking in New York. ``Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor."
Subscribe to:
Posts (Atom)