Ford posts quarterly loss, announces plant closings

Manufacturing News, Source : TheManufacturer.com
Published : 20 Oct 2005 17:09

Big Three automaker Ford reported a $284 million loss in its most recent quarter, causing CEO Bill Ford Jr. to say that “significant plant closings” in North America would be announced at the beginning of 2006, in a bid to slash costs.

The loss is the first quarterly loss for Ford since the fourth quarter of 2003, and compares with a $266 million profit for Ford just one year earlier. Rival General Motors reported a $1.6 billion quarterly loss earlier in the week. Both are experiencing the pinch of high gas prices and a significant decline in SUV sales. GM also announced plans to severely cut its operating costs.

Though Ford is still in the black for the year as a whole, Ford Chief Financial Officer Don Leclair announced that Ford would not reach its profit target of $300 million to $600 million by the end of this year.

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