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Ford quarterly results


Alloy Dave

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I work in Finance, so I keep up on these types of things. Unfortunately they are predicting "operating" earnings to get worse in Q3. My company releases earnings on the 30th...we won't be doing this poorly I'm sure.

 

Dave

 

http://money.cnn.com/2006/10/23/news/compa...sion=2006102315

 

Yeah, 5.3 Billion is a lot of coin :wacko:

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What they aren't saying is how much profit Ford has been earning for years on sales of fat/heavy pickups and SUV's. They've had their collective head's up their collective butts too long. No excuses. The rest of us saw this coming - they should have, too. I drive Ford's but still think they deserve no sympathy.

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What they aren't saying is how much profit Ford has been earning for years on sales of fat/heavy pickups and SUV's. They've had their collective head's up their collective butts too long. No excuses. The rest of us saw this coming - they should have, too. I drive Ford's but still think they deserve no sympathy.

 

I agree. But it's not just Ford...GM is doing the same thing. The focus is too much short term....the big, expensive, gas guzzlers are where people are 'price insensitive', so they go after it. They fail to look farther than 2 years out, and what those trends bring. When was the last time you saw a Honda 1 ton truck?

 

Dave

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I agree the results look bad, but massive restructuring is EXPENSIVE. These kind of results were not unexpected. Plant closings, layoffs and buy-outs all cost serious coin, and the residual effects tend to drag out for a long time. I imagine we won't start seeing some significant improvements to Ford's bottom line until 2008/2009.

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I agree the results look bad, but massive restructuring is EXPENSIVE. These kind of results were not unexpected. Plant closings, layoffs and buy-outs all cost serious coin, and the residual effects tend to drag out for a long time. I imagine we won't start seeing some significant improvements to Ford's bottom line until 2008/2009.

 

Even OPERATIONAL earnings were a loss. This excludes all restructuring costs.

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Even OPERATIONAL earnings were a loss. This excludes all restructuring costs.

 

 

True, but this doesn't surprise me either. These things take time...a long time. Ford has spent decades digging itself into this hole. You don't just flick a switch for profitablility. There are still many 'restructuring' activities to complete and sales strategies to execute.

 

I'm not Mr. Happy trying to tell you everything is great at Ford. I'm just asking for you to have some faith. I think Ford is going the right direction. We just have to give them time to execute. One of the biggest mistakes companies make in restructurring or changing strategy is not giving the changes enough time to work. Like I said before, if they stick with it, we should start seeing significant improvement by 2008/09.

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