Ford Post 274 million dollar loss for 08

[vztrt]

While not the best result there was a big write off but they have reduced their operating loss.


http://www.goauto.com.au/mellor/mell...2575DA0020325A

Ford Oz posts record $274m loss for 2008

Third consecutive operating loss announced by Ford Australia

By MARTON PETTENDY 19 June 2009

FORD Australia today announced a net after-tax operating loss of $274.4 million for 2008 – its worst financial result and more than triple the $87.1 million loss it posted in 2007.

The result is the third consecutive annual operating loss recorded by Ford Australia since 2005, when it posted a $148 million profit ahead of a $40 million loss in 2006.

GM Holden is yet to announce its financial results for 2008 but reported a $6 million loss in 2007 – a vast improvement on its $146 million and $145 million losses in 2006 and 2005 respectively.

Toyota Australia is also yet to reveal its financial performance during its previous fiscal year (ending on March 31), but posted $242 million and $184 million profits in 2007/08 and 2006/07 respectively.

Ford said its net sales revenue for 2008 was $3.29 billion – down about 7.5 per cent or $168 million from a year ago – from total sales of 108,564 vehicles including exports (down 5319 on 2007 figures).

However, it pointed out that the launch of the last year’s new FG Falcon range and continued cost-cutting helped offset the decline in automotive sales in Australia last year, when it improved its underlying financial result on a pre-tax operating basis.

Excluding financing costs of $74 million and special charges totalling $313 million on an after-tax basis, Ford Australia posted an underlying operating loss of $14 million, compared to a $99 million loss in 2007 – up $85 million.

Ford said special items included $151 million in accounting adjustments for the company's defined benefit superannuation fund, $110 million in restructuring costs including voluntary redundancies during 2008 and $52 million in the reduced value of certain long-lived assets.

Ford Australia president and CEO Marin Burela said today Ford had endured a challenging year as the Australian market was affected by the global economic slowdown.

“But Ford Australia’s underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies,” he said.

“We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009.

“We’ll continue with a laser focus delivering positive results, which included an increase in market share in May to 11.2 per cent. Ford is the only local manufacturer to have increased market share during 2009.

“Launches of exciting new products such as the all-new Fiesta, the updated Territory and Ranger and the Mondeo wagon, will continue to drive customers back to the Ford brand and increase our sales revenue.”

[vztrt]

Age Article

http://business.theage.com.au/busine...0619-cnm4.html

Ford's Australian losses triple
June 19, 2009 - 4:52PM

Ford's Australian operations lost a record $274.4 million in 2008, triple the previous year's deficit, as sales slumped and the car maker topped up employees' superannuation funds.

The company's sales shrank 7.4 per cent in 2008 to $3.06 billion, the company said in its annual report. Net sales fell about 5 per cent, to $3.29 billion, with vehicle sales dropping 5319 units to 108,564 last year.

The result reflects slowing demand for large cars and the impact of the global financial crisis in the second half of last year.

Ford president Marin Burela recently admitted the launch of its all-new Falcon sedan last April had got off to a slow start.

A new model usually enjoys a honeymoon period of higher sales, but Falcon sales finished last year 6 per cent down on 2007.

A perennial top-two seller for decades, the Falcon slipped behind the Toyota Corolla and Mazda3 small cars last year for the first time.

Gap widens

The new Falcon also failed to close the sales gap on its main large car rival, the Holden Commodore.

At the same time, Ford's other locally-produced vehicle, the Territory off-roader, fell out of favour with buyers, recording a 25 per cent drop in sales.

Overall Ford sales finished the year down 3 per cent in 2008.

Sales have deteriorated further this year, falling 18 per cent in line with the overall market. Falcon sales have proved more resilient, though, falling just 2 per cent, which has allowed Ford to increase its market share slightly.

Burela said the company had trimmed costs and improved efficiency throughout its business.

''We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009,'' he said.

'Challenging year'

Ford will build a new small car, the Focus, in Australia from 2011 as it attempts to re-shape its business to suit shifting buyer preferences.

"This was a challenging year as the Australian market was affected by the global economic slowdown, but Ford Australia's underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies," said Mr Burela in a statement.

Ford now lags a distant third in local vehicle sales, behind Toyota and General Motors' Holden. The company has been hurt by its reliance on larger vehicles, such as its six-cylinder sedans and Territory four-wheel drives, as higher fuel prices prompt buyers to switch to smaller cars.

The losses included a one-time restructuring cost of $162.18 million, compared with no such deduction in 2007.

The declining stock exchange also meant the company had to set aside a further $151.12 million for employees' defined benefit retirement fund, the company said. In the previous year, Ford needed just $369,000 to top up local super funds.

Ford and the other two car makers are recipients of government aid to help them produce more efficient vehicles in Australia. Ford's accounts show a net tax benefit of $127.5 million for 2008, almost triple the previous year's $45.3 million benefit.

The car maker, with plants in Geelong and Melbourne's northern suburb of Broadmeadows, spent $250.7 million on research and development last year, slight more than the $243.3 million spent in the previous year.

Excluding financing charges and special items, Ford's an underlying operating loss was $14 million, compared with a $99 million loss in 2007, an improvement of $85 million, the company said.

Special items included $110 million ''to reflect the cost of restructuring actions during 2008; and $52 million to reflect the reduced value of certain long-lived assets,'' the company said.

BusinessDay, with Richard Blackburn

[vztrt]

Car advice report

http://www.caradvice.com.au/33165/fo...sts-274m-loss/

Ford Australia has posted a substantial $274.4 million loss for last year but says much of that involves restructuring costs that will place it in a better position to move forward.

Restructuring charges cost it $162.2 million and came as sales revenue fell 7.4 per cent, lead by a declining interest in the Ford Falcon large car, which has been the company’s mainstay in the past.

In addition the collapse of the stock market meant the company had to contribute $151 million to prop up its employee superannuation scheme.

The losses reported by Ford Motor Company of Australia, which is wholly owned by Ford in the United States, have more than tripled from the $87.2 million reported in 2007.

However, the company said it had “proactively restructured its operations” in the past year and is in a strong position to deal with the future.

“This was a challenging year as the Australian market was affected by the global economic slowdown, but Ford Australia’s underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies,” said Ford Australia President and CEO Marin Burela.

Net sales revenue for 2008 was $3.29 billion, down $168 million from one year ago. The results were based on total volumes of 108,564 units, including exports, down 5319 units from a year ago.

“We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009,” said Mr Burela.

Ford said the one-off $162.2m restructuring charge included write-downs on the value of some assets.

Ford said it had the continued support of its US parent company, which provides the Australian arm with a revolving $900 million loan.

“Our current cash flow forecasts indicate a return to positive operating cash flows in 2009,” the Australian company said.

“Furthermore, if required, we could receive additional support from Ford US to continue our operations.”

A $52.2 million impairment loss was largely attributable to “the downturn in the global economy and the deteriorated outlook for the automotive industry both in Australia and overseas markets”, Ford said in its annual report.

[GT69]

'The age' loves to lay the boot in doesn't it? :

[Road_Warrior]

Ford said it had the continued support of its US parent company, which provides the Australian arm with a revolving $900 million loan.

O rly.

[phillyc]

http://www.businessspectator.com.au/...Q?OpenDocument
A much better, balanced article.

2nd last paragraph

Car people tend to be very product focused – the better mousetrap syndrome! But Ford’s product range looks fairly comprehensive and competitive at present while pricing is competitive, which leaves the image and marketing as the real problems.

[phillyc]

I think the real key is this

Ford's an underlying operating loss was $14 million which is a dramatic closing of the loss made the previous year.

The other big factor was the stock market losses requiring the defined benefit super/pension scheme needing big bucks, ie $150m plus!

Ford Australia, also had the decency to retrench workers, unlike Holden who are starving off their workers with real pay reduced by over 30%. The redundancy cost was $110m...

The final thing i noticed is what Marin Burela said.

“We’ll continue with a laser focus delivering positive results, which included an increase in market share in May to 11.2 per cent. Ford is the only local manufacturer to have increased market share during 2009.

Which sounds exactly like the speak that Ford CEO Alan Mullaly says.

[csv8]

Ford's Australian operations lost a record $274.4 million in 2008, triple the previous year's deficit, as sales slumped and the car maker topped up employees' superannuation funds.

The company's sales shrank 7.4 per cent in 2008 to $3.06 billion, the company said in its annual report. Net sales fell about 5 per cent, to $3.29 billion, with vehicle sales dropping 5319 units to 108,564 last year.

The result reflects slowing demand for large cars and the impact of the global financial crisis in the second half of last year.

Ford president Marin Burela recently admitted the launch of its all-new Falcon sedan last April had got off to a slow start.

A new model usually enjoys a honeymoon period of higher sales, but Falcon sales finished last year 6 per cent down on 2007.

A perennial top-two seller for decades, the Falcon slipped behind the Toyota Corolla and Mazda3 small cars last year for the first time.



The new Falcon also failed to close the sales gap on its main large car rival, the Holden Commodore.

At the same time, Ford's other locally-produced vehicle, the Territory off-roader, fell out of favour with buyers, recording a 25 per cent drop in sales.

Overall Ford sales finished the year down 3 per cent in 2008.

Sales have deteriorated further this year, falling 18 per cent in line with the overall market. Falcon sales have proved more resilient, though, falling just 2 per cent, which has allowed Ford to increase its market share slightly.

Burela said the company had trimmed costs and improved efficiency throughout its business.

''We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009,'' he said.

'Challenging year'

Ford will build a new small car, the Focus, in Australia from 2011 as it attempts to re-shape its business to suit shifting buyer preferences.

"This was a challenging year as the Australian market was affected by the global economic slowdown, but Ford Australia's underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies," said Mr Burela in a statement.

Ford now lags a distant third in local vehicle sales, behind Toyota and General Motors' Holden. The company has been hurt by its reliance on larger vehicles, such as its six-cylinder sedans and Territory four-wheel drives, as higher fuel prices prompt buyers to switch to smaller cars.

The losses included a one-time restructuring cost of $162.18 million, compared with no such deduction in 2007.

The declining stock exchange also meant the company had to set aside a further $151.12 million for employees' defined benefit retirement fund, the company said. In the previous year, Ford needed just $369,000 to top up local super funds.

Ford and the other two car makers are recipients of government aid to help them produce more efficient vehicles in Australia. Ford's accounts show a net tax benefit of $127.5 million for 2008, almost triple the previous year's $45.3 million benefit.

The car maker, with plants in Geelong and Melbourne's northern suburb of Broadmeadows, spent $250.7 million on research and development last year, slight more than the $243.3 million spent in the previous year.

Excluding financing charges and special items, Ford's an underlying operating loss was $14 million, compared with a $99 million loss in 2007, an improvement of $85 million, the company said.

Special items included $110 million ''to reflect the cost of restructuring actions during 2008; and $52 million to reflect the reduced value of certain long-lived assets,'' the company said.

BusinessDay, with Richard Blackburn
© 2007 The Sydney Morning Herald
Popular Stories

[Wally]

That's disappointing. I was hoping both companies (the two that count) would turn a nominal profit.

[Falc'man]

Originally Posted by Wally

That's disappointing. I was hoping both companies (the two that count) would turn a nominal profit.

Who are the two that count?


Poorly written article. Tries to link "losses" to "sales" in the first bit...

Ford's Australian operations lost a record $274.4 million in 2008, triple the previous year's deficit, as sales slumped

Then the explanation for this loss right down the bottom. Nothing to do with lack of sales. Doomsdayer's article, typical rubbish sorry to say.

The losses included a one-time restructuring cost of $162.18 million, compared with no such deduction in 2007.

The declining stock exchange also meant the company had to set aside a further $151.12 million for employees' defined benefit retirement fund, the company said. In the previous year, Ford needed just $369,000 to top up local super funds.

If you add up the numbers it's more of a positive result than the author would want you to think.

How about a link?

[Wally]

Originally Posted by Falc'man

Who are the two that count?


...

Holden Australia and Ford Australia

[Falc'man]

Originally Posted by Wally

Holden Australia and Ford Australia

They're just as Australian as Toyota, or whoever else manufactures here.

[Dr Smith]

Different writer, different view, same numbers:
http://www.businessspectator.com.au/...Q?OpenDocument

[Joe5619]

Accountants can be very creative!! Read the 2nd last paragraph to is where the "true" business perfromance is heading long time..

[vztrt]

http://www.fordforums.com.au/showthread.php?t=11263866

[Donut King]

merged threads

[Paxton]

Holden couldn't even afford to make their workers redundant. Ford, on the other hand, can.

If you think Holden's position will be any better, think again.

[The Snout]

Toyota just does what it has to do, Big Bogan Day Out (V8 Supercars) or not.

Thanks to them for building cars here in oz.

[EgoFG]

This is the first year of the FG .... How did Holden go in the first year of the VE

[vztrt]

Originally Posted by EgoFG

This is the first year of the FG .... How did Holden go in the first year of the VE

The last profit they made was in 04. So they havent made a profit on the VE.