Ford posts another huge loss

Ford Motor Co. today reported a second-quarter loss of $8.7 billion, or $3.88 a share — the company’s worst quarterly results ever. The performance is a consequence of slumping sales, especially of trucks, in a sour U.S. economy with $4-a-gallon gasoline, as well as rising material costs.

Last year during the same period, Ford reported a net profit of $750 million, or 31 cents a share.

Revenues during the April-June period declined to $38.6 billion, down from $44.2 billion a year ago.

The second-quarter loss includes $8 billion, or $3.26 a share, in special charges, mostly in North America, which has been hit hard by an economic slowdown, a consequence of crises in the housing, credit and energy sectors.

Ford’s operating loss from continuing operations, excluding special items, was $1.4 billion, down from a year-ago profit of $258 million.

During the quarter, Ford’s cash reserves also decreased by $2.1 billion, to $26.6 billion.

Following Ford’s $100-million profit in the first quarter, Ford has now lost $8.5 billion through the first half of the year. Detroit Free Press

[Editor's Note: Getting their tails kicked by Toyota and Chevy week in and week out in NASCAR sure helps to contribute to Ford's downfall.]