OUCH!!
NEW YORK (MarketWatch) -- Ford Motor Co. reported Thursday a fourth-quarter loss that mushroomed to $5.8 billion, putting its loss for the year at nearly $13 billion, as the automaker incurred heavy charges to restructure its North American operations.
Ford's quarterly loss of $5.8 billion, or $3.05 a share, widened from $74 million, or 4 cents a share, in the year-earlier period.
Excluding special items, the Dearborn, Mich.-based company (F : Ford Motor Company
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7:47am 01/25/2007
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F8.20, -0.10, -1.2%) said fourth-quarter loss would have been $2.1 billion, or $1.10 a share, reversing a similarly compiled profit of $285 million, or 15 cents a share, in the final three months of 2005.
Restructuring in Ford's North American operations reduced quarterly earnings by $3.7 billion. For the year, the automaker said restructuring reduced earnings by $9.9 billion.
Ford's sales in the three months ended Dec. 31 fell 13% to $40.3 billion from $46.3 billion.
Analysts polled by Thomson First Call had forecast, on average, a loss of $1.01 a share and sales of $34.67 billion for the December quarter.
The company's accelerated "Way Forward" plan hopes to return its North America operations to profitability by 2009. The move will idle or cease work at 16 manufacturing facilities through 2012, including seven vehicle-assembly plants.
At the end of 2006, Ford said, 38,000 unionized workers had accepted voluntary buyout offers.
Ford's shares fell 10 cents on Wednesday to end at $8.20.
Padraic Cassidy is a reporter for MarketWatch in New York.
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