Ford's profits plummet $8.8bn

[DanielXR8]

From news.com.au

FORD Motor Co announced on Thursday a quarterly loss of $US5.9 billion ($8.8 billion), capping a nightmarish year, but said it had "sufficient liquidity" to fund its turnaround plan without US government aid.

The number two US automaker's results showed a sharp widening of its losses as auto sales were slammed in the fourth quarter by a deep economic crisis and credit squeeze.

But Ford said that unlike rivals GM and Chrysler, it had enough cash to keep operating as it executes a restructuring plan.

"Based on current planning assumptions, it does not need a bridge loan from the US government, barring a significantly deeper economic downturn or a significant industry event, such as the bankruptcy of a major competitor that causes disruption to the company's supply base, dealers or creditors,'' Ford said in a statement.

Ford's loss in the fourth quarter was more than double the deficit in the same period in 2007 of $US2.8 billion ($4.2 billion).

Revenues plunged some 33 per cent to $US29.2 billion ($43.9 billion) in the period, amid weak sales and the divesting of its Jaguar division.

For all of 2008, Ford posted a whopping loss of $US14.57 billion ($21.93 billion), compared with a $US2.7 billion ($4.06 billion) loss in all of 2007.
Related Coverage

* Volatility shows in mixed marketsNEWS.com.au, 10 Dec 2008
* Ford speeds up move to small carsNEWS.com.au, 25 Jul 2008
* Reader's Comments: US giants 'laugh at Aussie suckers'NEWS.com.au,
* Wall St rebounds stronglyNEWS.com.au, 3 Dec 2008
* US billionaire dumps Ford sharesNEWS.com.au, 22 Oct 2008

Revenues for the year fell to $US146 billion ($219.7 billion) from $US172 billion ($258.8 billion).

"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 chief executive Alan Mulally.