Ford posts worst-ever result in a quarter

DETROIT (MCT) — Ford Motor Co. on Thursday reported a second-quarter loss of $8.7 billion, or $3.88 a share — the company's worst quarterly results ever.

The performance is a consequence of slumping sales, especially of trucks, in a sour U.S. economy with $4-a-gallon gasoline, as well as rising material costs.

Last year during the same period, Ford reported a net profit of $750 million, or 31 cents a share.

Revenues during the April-June period declined to $38.6 billion, down from $44.2 billion a year ago.

The second-quarter loss includes $8 billion, or $3.26 a share, in special charges, mostly in North America, which has been hit hard by an economic slowdown, a consequence of crises in the housing, credit and energy sectors.

Ford's operating loss from continuing operations, excluding special items, was $1.4 billion, down from a year-ago profit of $258 million.

During the quarter, Ford's cash reserves also decreased by $2.1 billion, to $26.6 billion.

Following Ford's $100-million profit in the first quarter, Ford has now lost $8.5 billion through the first half of the year.

At the same time, the company outlined an updated revival strategy that includes:

• Adding new fuel-efficient small cars and crossovers to its North American product lineup. That includes six European small vehicles that are coming to North America from global B-car and C-car platforms.

• Converting three large truck and SUV plants to small car factories. Retooling begins this December.

• Upgrading the Ford, Lincoln and Mercury lineup almost completely by end of 2010.

• Doubling hybrid vehicle production and lineup in 2009.

• Doubling capacity for North American four-cylinder engines by 2011.

• Ford also plans to be the best or among the best in fuel economy.