Ford expects $US570m international op loss

[csv8]

Ford expects $US570m international op loss

From: AAP June 29, 2012 8:17AM

Ford Motor Company says its losses on international operations could hit $US570 million ($A567.25 million) in the quarter ending this week, but would not be enough to offset profits from domestic sales.

IN a filing with the Securities and Exchange Commission, the number-two US automaker said it expects second-quarter pre-tax operating profits, excluding special items, "to be substantially lower than the same period a year ago".

"We continue to expect good results for Ford North America and Ford Credit during the second quarter, but our operations outside of North America are under increasing pressure," the statement said.

"In fact, our combined results for the second quarter for Ford South America, Ford Europe, and Ford Asia Pacific Africa could be a loss of about three times as much as the $US190 million pre-tax loss incurred by these operations in the first quarter."

In South America, the company said, it was running into greater competition and pricing challenges as well as weakening currencies.



Europe's turn into recession has hit sales there, biting into its margins, Ford said.

"We are impacted by the serious economic crisis, compounded by an intensifying competitive environment as manufacturers react to lower consumer demand and excess production capacity."

In its Asia Pacific Africa division operations are better, but Ford said it was "not yet fully realising the associated revenue of new products and facilities".

"While our volume is up in the region, our investment and growth costs are rising faster for now."

"For the full year, we continue to expect to be solidly profitable," it added.
http://www.couriermail.com.au/news/b...-1226411769923
My comment "what does that mean ? Ford Oz is doing ok ?

[Dr Smith]

The APA division covers South Africa, Asia (China, India, Thailand, is there more?) and Australia so I don't think we can be more specific about individual units.

[mik]

tuff times ahead everywhere.

[Road_Warrior]

Originally Posted by csv8

My comment "what does that mean ? Ford Oz is doing ok ?

No I think that is in FAPA generally. My take on that is that they are still trying to recapitalise from the downtime of the Thai plants after the floods - availability of Ranger stock being a classic example.

[BHDOGS]

and Europe not having two euros to rub together

[ebxr8240]

Originally Posted by BHDOGS

and Europe not having two euros to rub together

Or one !!!

[Buntz]

That's operating losses from three market regions. Which is bearable for Ford. Ford spent more than that on adding Transit to the F-150 plant with plant upgrades.

[Bossxr8]

Originally Posted by Dr Smith

The APA division covers South Africa, Asia (China, India, Thailand, is there more?) and Australia so I don't think we can be more specific about individual units.

I don't think China is counted as part of FAPA, i'm pretty sure its big enough to be counted on its own AFAIK.

Its interesting how Ford US is the only division making money, not suprising considering One Ford basically is all set up to benefit them while leaving the others to cop whatever they are given ie. no exporting to the US, and rather than having other divisions export to them they would rather build it themselves.

One Ford (but only if it suits the US)

I also don't get why Ford is so supply limited with vehicles out of Europe, when they are not selling much over there, especially not being able to get any diesel Kugas, yet they apparently have excess capacity.

[RASER]

Originally Posted by Bossxr8

Its interesting how Ford US is the only division making money, .

Its easy, sell lots of cheap-to-make Pick Up trucks, which Ford have done a really good job with for decades, its kept the whole company profitable most of the times

How about some for AUS> :-)

[mik]

BossXr8 i think the your on the money with the Ford US putting it`s own plants first, you can`t really blame them i suppose, imo half the problem is that are just too many car makers, i can see a point in the future ......it maybe decades off or sooner, but still i see a lot of the car makers being absorbed or shutting up and only a couple of major players being left pumping out bland electronic eco boxes,
powered by whatever power source is the least costly and available at the time as living standards go further downwards, but i could be wrong .

[Bossxr8]

Originally Posted by mik

BossXr8 i think the your on the money with the Ford US putting it`s own plants first, you can`t really blame them i suppose, imo half the problem is that are just too many car makers, i can see a point in the future ......it maybe decades off or sooner, but still i see a lot of the car makers being absorbed or shutting up and only a couple of major players being left pumping out bland electronic eco boxes,
powered by whatever power source is the least costly and available at the time as living standards go further downwards, but i could be wrong .

Its a problem right across the industry of over capacity, but manufacturers seem very reluctant to shut plants, so it goes on.

[samos]

Didn't ford aus take an approx 200mil hit this fy on purpose? Also isn't shutting the Philipines plant part of that loss too? By my simple calcs, that makes for about 200+190 of the 590 losses? Or am I way off here?