Ford Motor Company released their Fourth Quarter financial reports for 2008, and aside from achieving a few small market goals, the results aren’t pretty. Total, Ford suffered a net loss of $5.9 billion, or $2.46 per share, and a pre-tax loss of $3.7 billion – all while managing to shave an estimated $1.4 billion off of 4th quarter expenses. Despite the staggering loss, Ford still managed to secure a relative victory by both reducing global dealer inventory by more than 50,000 vehicles compared with the third quarter and banking $5.1 billion in North America cost reductions at year-end 2008.
Ford is taking the loss in stride, however, indicating that although the numbers are dismal at face value, the Q4 results indicate that Ford is still “on track” for both its overall and its North American Automotive pre-tax results to be at or above break-even in 2011, excluding special items. “Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results,” said Ford President and CEO Alan Mulally. “We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds.”
Continued Mulally, “The progress we continued to make in the fourth quarter gives us great confidence that we have the right plan, the right people and the right products to create a viable, profitably growing Ford for all of our stakeholders.” Mulally added, “Our market share growth in the fourth quarter in the U.S. and Europe is a positive sign that customers recognize the value of our new products and understand that a new and different Ford is emerging.”
Source: Ford Motors