Summary
Ford Motor Company reported a net loss of $752 million ($0.41 per diluted share) for the second quarter of 2001, a deterioration from a net loss of $577 million ($0.47 per diluted share) in the same period of the prior year. This decline was significantly impacted by approximately $2 billion in charges and lost profits related to the Firestone tire replacement program, as well as $201 million in charges associated with Mazda's restructuring and new accounting standards for hedging and derivatives. The Automotive sector bore the brunt of this loss, reporting a net loss of $1,194 million. In contrast, the Financial Services sector demonstrated resilience, posting a net income of $442 million.
Key Highlights
- 1Ford Motor Company experienced a significant net loss of $752 million in Q2 2001, a worsening from the prior year's loss of $577 million.
- 2The company incurred substantial charges of approximately $2 billion related to the Firestone tire replacement program, negatively impacting profitability.
- 3The Automotive sector reported a substantial operating loss of $1,194 million for the quarter.
- 4The Financial Services sector, including Ford Credit and Hertz, provided a profit cushion, generating $442 million in net income.
- 5Sales and revenues for the quarter decreased to $42.3 billion from $44.5 billion in the same period last year.
- 6Market share in the U.S. automotive market declined to 23.2% from 24.9% in the prior year's second quarter.