Ford Lowers Outlook, Will Cut More Jobs
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Ford Motor cut its 2005 earnings forecast for the second time this year and said it will eliminate about 1,700 more jobs because of weak sales.
Profit is expected to be $1 to $1.25 a share, excluding some costs, compared with a prior forecast of $1.25 to $1.50, the Dearborn, Mich.-based company said in a statement. Ford on April 8 lowered the forecast from a range of $1.75 to $1.95.
Ford said it will trim 5% of salaried jobs in North America, in addition to a cut of 1,000 such positions in America announced in April. Chief Financial Officer Don Leclair said in an interview that the latest reduction applies to about 35,000 employees at the Ford, Lincoln, and Mercury brands.
Ford yesterday said it also is eliminating 2005 bonuses for managers worldwide and is suspending matching grants for salaried-worker 401(k) retirement plans effective July 1.
