Ford reports a quarterly loss of $284 million, plans layoffs

0 Comments | Deseret News (Salt Lake City), Oct 21, 2005

DEARBORN, Mich. (AP) -- Ford Motor Co., its profits dragged down by continuing poor performance in North America, will announce "significant" U.S. plant closings and layoffs in January in another heavy blow to the nation's autoworkers. The company reported a third- quarter loss of $284 million on Thursday.

Ford and other U.S. automakers have been hurt by competition from Asia as well as high health care and materials costs and bloated plant capacity. Ford Chairman and CEO Bill Ford said he will complete the restructuring plan in December and announce it in January. He said the plan was painful but essential and would affect salaried workers and hourly workers represented by the United Auto Workers.

"This is not a sacrifice we will ask only the UAW and its members to share. There will be sacrifices throughout the company, top to bottom," Bill Ford said in a conference call with investors and media. "Our industry is beginning a dramatic restructuring which is sorely needed. While the challenges are great, so are the opportunities."

Ford shares fell 5 cents Thursday to close at $8.42 on the New York Stock Exchange. They have traded in a 52-week range of $8.26 to $15.00. -->

The nation's second biggest automaker lost 15 cents per share for the three months ended Sept. 30 in contrast to a profit of $266 million, or 15 cents per share, in the year-ago quarter.

Revenue for the quarter rose to $40.9 billion from $39.1 billion in 2004.