Ford reports $8.7 billion Q2 net loss

Ford has reported an $8.7 billion net loss for the second quarter of the year, with declining sales of large pickups and SUVs and a pre-tax special charge of $8 billion largely to blame for the poor result. The special one-off charge included impairments of $5.3 billion for Ford North America’s long-lived assets and $2.1 billion for Ford Motor Credit Company's operating lease portfolio.

Ford’s second quarter revenue, excluding special items, was $38.6 billion, down from $44.2 billion a year ago.

The net loss equates to roughly $3.88 per share for the second quarter, down on the $750 million, or 31 cents per share result for the same period one year ago. Excluding the $8 billion of one-time charges, Ford’s loss only equates to 62 cents per share. Ford’s European operations posted a profit of $582 million for the period and in South America the Blue Oval earned $388 million.

Ford is currently undertaking a massive restructuring program in North America and is confident it will reach a $5 billion cost reduction by the end of the year. In addition to the cost cutting measures, Ford is also planning significant product and production transformation programs including the addition of several new fuel-efficient small vehicles in North America and a realignment of its North American manufacturing operations.