Ford’s Performance Dragged Down By Broad-Based Weakness
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While most of the focus at Ford Motor Co. has been on reviving its ailing North American automotive operations, third-quarter results show that the company’s new chief executive also has his work cut out to fix other parts of the business around the world.
Ford on Monday reported a preliminary third-quarter loss of $5.8 billion, or $3.08 a share, as restructuring costs, operating weakness, and asset impairment charges weighed on the bottom line. A $2 billion pre-tax loss in North American automotive operations — which are the subject of the company’s “Way Forward” turnaround plan — was the primary culprit in Ford’s $1.2 billion operating loss.
But issues in other areas — notably in the Premier Automotive Group of European luxury brands, at Ford Motor Credit, and in Ford’s Asia-Pacific and Africa business — also proved to be a drag on the performance in the most recent quarter. The broad-based weakness comes at a time when Ford is struggling to better integrate its global operations, a strategy that CEO Alan Mulally says is among the top issues on the company’s agenda.
