World number two carmaker, the Ford Motor Company, reported Wednesday a first quarter net loss of $800 million (€899.71m; £553.76m), attributing its performance to declining stateside sales and ongoing restructuring costs.
The loss compares to a $1.3 billion profit year-on-year, and was exacerbated by a $708m goodwill write-down in respect of the sale of its Kwik-Fit unit. Other contributing factors were the $310m loss made by the group’s core automotive unit, lower output and higher US marketing costs.
The silver lining came courtesy of finance subsidiary Ford Credit and the automaker’s European unit. These helped restrict underlying operating losses to $108m (6 cents a share) – bringing the loss to the lower end of analysts’ estimates.
And a prediction by Ford that it would again better market expectations in the second quarter with earnings of 23 cents a share, lifted its stock at lunchtime Wednesday by 2 per cent to $16.19 (33 cents).
Data sourced from: Financial Times; additional content by WARC staff