Ford Loses $3 Billion, But Most Products Stay On Track

Financial Results Summary	Third Quarter		First Nine Months
	2008	O/(U) 2007	2008	O/(U) 2007
Wholesales (000) ++	1,174	(313)	4,266	(644)
Revenue (Bils.) ++	$ 32.1	$ (9.0)	$ 110.1	$ (18.2)
Continuing Operations ++
Automotive Results (Mils.)	$ (2,906)	$ (2,544)	$ (2,924)	$ (2,715)
Financial Services (Mils.)	159	(397)	( 111)	(1,066)
Pre-Tax Results (Mils.)	$ (2,747)	$ (2,941)	$ (3,035)	$ (3,781)
After-Tax Results (Mils.)	(2,977)	(2,953)	(3,846)	(3,909)
Earnings Per Share ++++	(1.31)	(1.30)	(1.72)	(1.75)
Special Items Pre-Tax (Mils.)	$ 2,207	$ 2,557	$ (6,219)	$ (6,199)
Net Income
After-Tax Results (Mils.)	$ (129)	$ 251	$ (8,696)	$ (8,784)
Earnings Per Share	(0.06)	0.13	(3.89)	(3.94)
Automotive Gross Cash (Bils.) +++	$ 18.9	$ (16.7)	$ 18.9	$ (16.7)

• Reducing North American salaried personnel-related costs by an additional 10 percent by the end of January 2009, through personnel reductions, attrition and other actions. The reductions are in addition to personnel-related cost actions already taken in Ford North America and under way in Ford of Europe, Ford Asia Pacific and Africa, and Volvo.
• Further reduction of U.S. hourly employees by approximately 2,600 as a result of the most recent round of targeted buyouts – bringing Ford’s total U.S. hourly reductions through buyouts in 2008 to approximately 7,000.
• Eliminating merit pay increases for North America salaried employees in 2009.
• Eliminating performance bonuses for global salaried employees, including the Annual Incentive Compensation Plan for the 2008 performance year.
• Suspending matching funds for U.S. salaried employees participating in Ford’s Savings and Stock Investment Plan, effective Jan. 1, 2009.
• Reducing annual capital spending to between $5 billion and $5.5 billion – enabled by efficiencies in Ford’s global product development system and reduced spending in declining product segments.
• Reducing engineering, manufacturing, IT and advertising costs through greater global efficiencies.
• Reducing inventories globally and achieving other working capital improvements.
• Return of capital from Ford Credit to Ford Motor Company consistent with Ford Credit’s plan for a smaller balance sheet and a focus on core Ford brands.
• Continuing to develop incremental sources of Automotive funding, including divesting of non-core operations and assets, and implementing equity-for-debt swaps.

It's not pretty, but the good news (if you can call it that) is that most products will arrive on their due dates with a few select vehicles delayed until market conditions improve. Which products are those? Ford isn't saying. “We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,” said Ford President and CEO Alan Mulally. “We have a strategy that is broad and specific enough to handle the dramatic changes in today’s environment. We will continue to assess the rapidly changing business environment and modify implementation of our plan accordingly.”

source: ford