Ford has so far been able to avoid suckling on the teat of the federal government like its cross-town rivals, but after today's announcement of a 2008 fourth-quarter loss of $5.9 billion, serious questions are beginning to arise about how FoMoCo will fair in 2009.
This will be the third consecutive year Ford hasn't posted a profit, with a $2.8 billion loss in the previous year and $620 million drop during the same quarter of 2007. Ford wrapped up 2008 with $13.4 billion in cash reserves, but has announced plans to draw $10.1 billion in available credit to weather what's sure to be a rough 2009. That would bring Ford's liquidity up to $23.5 billion, sans the money already used for January, and the automaker contends that this is enough to meet its goals for the year. However, if Ford continues its fourth-quarter cash burn rate of $1.83 billion a month, there's a distinct possibility that FoMoCo execs might be knocking on Uncle Sam's door before the year comes to a close.
On a more positive note, Ford posted a 2008 pre-tax profit of $1.06 billion in Europe, although the last quarter saw a drop of $330 million. Hit the jump for Ford's full press release.
[Source: Ford]
No comments:
Post a Comment