Ford Accelerates Q3, Full-Year Earnings Forecast

21 September 2004

Despite the loss of over a thousand jobs at its British Jaguar factory, poor US sales and its decision to leave Formula One motor racing at the end of this year, Ford Motors still raised its predictions for third-quarter and full-year earnings.

The American auto giant suffered pre-tax losses of $362 million (€298m; £203m) in the second quarter of 2004 at its Premier Automotive Group as it lost market share to Japanese rival Toyota.

Jaguar and Land Rover performances were particularly weak in the first eight months of the year, with sales down by 11.5% and 15.4% respectively.

The only saving grace came in the form of financial services unit, Ford Motor Credit, which posted Q2 net profits of $897m and has continued to shine.

As Ford aims to streamline its Jaguar business, selling the F1 division to focus on management and financial resources, it claims pretax charges for the sale and job cuts will total $450m.

Nevertheless, it lifted full-year earnings predictions by ten to fifteen cents a share to $1.90-$2.00.

Data sourced from: USA Today; additional content by WARC staff