Ford Motor Co. (NYSE:F) investors know that next week's fourth quarter results will be dreadful. The only question left is how bad.
Analysts are expecting the maker of the Escape and Mustang to post a loss of 97 cents on revenue of $34.67 billion on January 25, according to Thomson Financial. The bleeding is expected to continue this year, resulting in a loss of $1.52 per share.
How much patience is Wall Street going to give Chief Executive Alan Mullaly to turn the company around? Mullaly won high marks when he ran Boeing Co.'s (NYSE:BA) commercial aviation division. That's why Ford hired him in September.
James Brock, a professor of economics at Miami University in Ohio, told Bloomberg News in October, that "what people will be looking for is a sense that somebody is in charge, that there's a sense of credibility in that person.''
That's quite a tall order.
Ford, which expects to burn through $17 billion over the next three years, expects to return to profitability in 2009, according to the Wall Street Journal (subscription required). The company is slashing costs, cutting its work force and consolidating its dealer network.
During the recent analysts meeting, Mullaly said the company was ahead of schedule on its restructuring plan. Nonetheless, he sounded a cautious note, saying "Our No. 1 priority is to restructure ourselves in the near term," the Journal said.
Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.











Reader Comments (Page 1 of 1)
1-20-2007 @ 6:20PM
Greg Humphrey said...
FYI - You can access WSJ for free with a netpass at: http://www.congoo.com/netpass/install
they have a news site too: http://news.congoo.com
I like free!
1-25-2007 @ 7:57AM
Business Consultant said...
I believe Mullaly is the real deal and will turn Ford around sooner rather than later. I expect to see some signs of improvement this quarter however.
1-21-2007 @ 3:48PM
Raphael Loberant said...
I have been investing in the automotive market for a long time. The problem with for is that they are coming out with bad products. The updated Ford Five-hunderd introduction at NAIAS will not sell with get the same or worse numbers as the current model.The Five hunderd is overpriced, boring style and very unexciting. The updated focus (which is not the european focus) is a poor product when compared to a Honda Civic, Mazda 3 (a ford product) and Toyota. It will compete with the cobalt from chevrolet, but expect a redesign soon from chevrolet expecting to be a Euro-opel platform. Ford's other problem is Jaguar. They need to sell this brand or intergrate it with Volvo and Mazda platforms with unigue stying and frequent model freshening. There are alot of problems with ford and I dont see any growth in any segment and don't expect a profit in 2009, it will not happen. GM and Toyota are MUCH better investments. I still see growth in GM stock even though it has gone way up in the last year. The new products from GM and the rebadging of OPEL into Saturn and in the near future of Holden holding strong with Pontiac and the revitalizing of Cadillac into a European battiling brand with the new BEATIFUL CTS in 2008 and the strong growth in china expect GM to be number 1 for a long long time.
1-21-2007 @ 11:12PM
A.J said...
Now is the time to buy Ford stock
1-24-2007 @ 10:43AM
Brad DiDonato said...
I understand that there is a boycott going on against Ford Motor Company concernig their active participation in the culture war based on their active support of the homosexual movement. The timing of this boycott seems to coincide with the Ford stock's rapid decline. (boycottford.com)
How come this is never mentioned in the assesment of this stock performing so poorly. It seems like this boycott is having it's effect. particularly when comparing it's woes to GM and Chrysler. These two companies have stayed out of the active participation in the culture war, and even though not performing stellarly, they have faired much better then Ford. What is Toyota going to do when boycott participants start to connect the dots and begin boycotting Toyota products as well?
Ford's current losses can't be being helped by this boycott worsening their already dismal performance. The remedy for this boycott, which must be larger then everyone is willing to admit, including the current CEO at Ford, is to simply pull out of the culture war and focus on building and selling cars. A very divisive position to take for such a large company, which polarizes a million or more customers, against the automaker. What foolishness on Ford's part. They put this boycott to bed and watch their stock values begin to soar. What a selfish position to take at the cost of 10's of thousands of jobs, and billions of dollars in lost revenues.
1-31-2007 @ 7:25AM
Dan said...
Ford it will recover the loss but starting with 2008-2009.
http://www.ciuboda.com/post/ford-motor-loss-2006-astrology/50