April 18, 2002
Ford first quarter loss lower than expected
Ford Motor Company reported yesterday a net loss of $800 million, or 45 cents per share, in the first quarter of 2002. Excluding unusual items related to the transition to a new accounting standard, Ford lost $108 million, or 6 cents per share. Ford earned $1.13 billion, or 60 cents a share, before unusual items in the first quarter of 2001.
Ford’s first quarter revenues were $39.86 billion, a 6 percent decline from last year’s first quarter. Worldwide vehicle unit sales in the 2002 first quarter were 1,678,000, down 7 percent from a year ago.
“Our first quarter performance shows that our Revitalization Plan efforts are taking hold and we are heading in the right direction,” said Bill Ford, chairman and CEO. “While there is still a great deal of uncertainty in our industry, the general economic climate is improving and we are on schedule to meet or surpass our 2002 earnings milestone.”
First quarter 2002 results include a $708 million non-cash after-tax charge for the transition to a new accounting standard for goodwill (SFAS No. 142), which related to various investments in the automotive sector, and a $16 million non-cash after-tax benefit relating to the accounting standard for derivative instruments and hedging activities (SFAS No. 133).
Worldwide automotive operations lost $310 million in the first quarter, compared to a profit of $748 million year ago. Worldwide automotive revenues were $32.32 billion, compared with $34.65 billion a year ago.
On Tuesday, General Motors reported that it earned $791 million on revenues of $44.3 billion in the first quarter of 2002, an increase over the first quarter of 2001.