Ford reports $5.07 billion loss
Jan 17, 2002 12:00 PM
Ford Motor Co. today reported a fourth-quarter 2001 net loss of $5.07 billion, less than a week after the automobile and light-truckmaker announced it would cut 35,000 jobs, close five factories by the end of the decade and eliminate four vehicle models. The fourth-quarter loss compared with a net profit of $1.1 billion in the same period a year earlier. Ford posted its first annual loss since 1992 due to problems including the Firestone tire crisis, recalls and a heated incentive war amid the U.S. economic recession. Ford's financial results included an after-tax charge of $4.1 billion against fourth-quarter results in connection with the restructuring plan . Additionally, there was a $102 million noncash charge for a change in accounting standards. Ford's total sales and revenues in the fourth quarter fell 3% to $41.15 billion from $42.59 billion in the same quarter a year earlier. In contrast, General Motors reported fourth-quarter earnings of 60 cents per share on Wednesday, reflecting stronger-then-expected U.S. vehicle sales, though its fourth-quarter results were down 58%. With its fourth-quarter results, Ford posted a full-year net loss of $5.45 billion, its first annual loss since 1992. Just two years ago, it reported a net profit of $3.5 billion.
