Ford reports $123 million loss in Q2

24-08-2006

Ford is to accelerate restructuring efforts after reporting a loss in the last quarter.

The US carmaker reported net losses of $123 million (£67 million) in the second quarter, bringing total losses in its North American operations to $1 billion for the year so far.

Revenues slipped $42 billion in Q2, compared to $44.6 billion a year ago.

Ford made a profit of $946 million (£511 million) in the second quarter of last year.

In a statement, Bill Ford, chairman and chief executive officer, said the firm would make additional cuts in the next 60 days.

Ford, which has already said it will axe 30,000 jobs and close 14 factories by 2012, will cut production in North America by 15 per cent (700,000 vehicles) by the end of 2006, after demand for SUVs and pick-up trucks dropped in the wake of record petrol prices.

Ford has failed to make money in North America in seven of the past eight quarters, according to analysts.

Shares in the firm skidded downwards 14 cents to $6.19.



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