Ford posts loss

John Porretto

Tuesday, Jan. 21, 2003 | 9:39 a.m.

DEARBORN, Mich. -- Ford Motor Co. posted a narrower loss of $130 million in the fourth quarter, primarily due to its ongoing restructuring, and said today it plans to accelerate the turnaround this year.

The world's second largest automaker lost 7 cents a share in the October-December period compared with a loss of $5.07 billion, or $2.81 cents a share, in the year-ago quarter.

Excluding charges for restructuring and other one-time expenses, Ford earned $150 million, or 8 cents a share, in the fourth quarter -- a penny a share more than the forecast of analysts surveyed by Thomson First Call. Excluding charges, Ford lost $860 million, or 48 cents a share, in the fourth quarter of 2001.

Revenue in the latest quarter was $41.6 billion, up $869 million from a year ago, despite a decline in the number of units sold.

Worldwide vehicle sales fell slightly in the fourth quarter to 1.79 million from 1.8 million a year ago.

"In the first year of our turnaround, Ford improved its operating results by about $1.7 billion," Chairman and Chief Executive Bill Ford said in a statement. "Our earnings performance demonstrates that we are making solid progress toward goals outlined in our revitalization plan."

One-time charges in the fourth quarter included the reduction of 950 jobs at luxury brands Jaguar, Volvo and Land Rover.

For all of 2002, Ford posted a loss of $980 million, or 55 cents a share. Excluding unusual items and results from discontinued operations, Ford earned $872 million, or 47 cents a share.

In 2001 Ford had a loss of $5.45 billion, or $3.02 a share -- a performance that prompted the company to launch a companywide restructuring a year ago this month. Excluding charges for restructuring and other one-time items in 2001, Ford's loss was $782 million, or 44 cents a share.

Revenue for 2002 was $162.6 billion, an increase of 1 percent from a year ago.

In North America, Ford narrowed the loss in its automotive operations from $2.15 billion in 2001 to $559 million in 2002.

Ford Motor Credit Co., the automaker's financing arm, earned $1.38 billion in 2002, up $175 million from the year-ago period.