Ford announces $129 million loss

11-08-2008 | AP

Given its third quarter loss, the auto maker will cut 10 percent of its workforce

Panama Star DEARBORN, MICHIGAN. Ford Motor Co. says it lost $129 million in the third quarter as the struggling automaker burned up $7. 7 billion in cash.

The automaker also said Friday it will cut another 10 percent of its North American salaried work force costs as it tries to weather the worst economic downturn in decades.

Ford says it lost 6 cents per share for the quarter, compared with a loss of $380 million, or 19 cents per share, a year ago.

The company posted a pretax loss of $2.7 billion from continuing operations. But it was offset by a $2 billion gain as the company shifted retiree health care liabilities to a trust run by the United Auto Workers.

Sales fell 22 percent to $32.1 billion from $41.1 billion due to lower volume and the sale of Jaguar and Land Rover.

Excluding special items, Ford lost $1.31 per share, worse than expected. Analysts surveyed by Thomson Reuters predicted a loss of 94 cents per share.

Dearborn-based Ford reported its worst three-month performance ever in the second quarter, when it lost $8.7 billion.