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Is Ford running on empty?

As expected, Ford Motor Co. (NYSE: F) posted dreadful results. But the numbers were even more awful than Wall Street feared, sending shares of the company plunging in premarket action.

The number three automaker -- at least for now --- posted a net loss of $8.7 billion, or $3.88 a share, for the second quarter including a $5.3 billion write down of its North American auto business and another $2.1 billion charge. A year earlier, Ford had a net profit of $750 million, or 31 cents per share. Revenue excluding special items fell to $38.6 billion compared with $44.2 billion during the year earlier period.

Excluding one-time expenses, the loss was $1.38 billion, or 62 cents. On that basis, analysts had expected a loss of 27 cents on revenue of $34.6 billion, according to Thomson Reuters.

"Our European and South American operations are robust and profitable," said Chief Executive Alan Mullaly in the earnings release. " We have momentum in Asia. And we are uniquely positioned to leverage our global assets and the global strength of the Ford brand to quickly bring more small, fuel-efficient vehicles to North America."

Ford, which posted better-than-expected results earlier this year, is accelerating its plans to shift away from producing the hugely profitable and gas-guzzling Ford F-150 pick-up truck line. Three truck and SUV plants will be converted to make smaller, more fuel-efficient vehicles.

"In addition to bringing six small vehicles to North America from the company's acclaimed European lineup, Ford is accelerating the introduction of fuel-efficient EcoBoost and all-new four-cylinder engines, boosting hybrid production and converting three existing truck and SUV plants for small car production, beginning this December," the company said.

For now, investors, including billionaire Kirk Kerkorian, are willing to give Mullaly time to bring back Ford from the abyss. Their patience, though, is not inexhaustible.

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Last updated: October 11, 2008: 01:38 AM

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