Ford Motor Company today reported a second-quarter operating loss of $511 million under the weight of its $3 billion recall of Firestone tyres and a tougher US market for its pickup trucks and sport utility vehicles.
The world's second largest car maker said it continued to expect full-year earnings of $1.25 to $1.35 per share. The average estimate of 18 Wall Street analysts is $1.25, with a range of $1.10 to $1.50, according to Thomson Financial/First Call.
Ford recalled 13 million Firestone Wilderness AT tyres on Ford vehicles in May, citing a risk of tread separation and other problems. The move led Firestone to sever its nearly 100-year-old relationship with Ford.
Ford's second-quarter operating loss excludes one-time charges of $201 million related to a restructuring at Ford's Mazda Motor unit and accounting changes.
The earnings report caps a dark three months for Ford. The company's revenues fell 5 per cent in the quarter to $42.3 billion as sales slowed in North America.
For the second quarter of 2000, Ford reported an operating profit of $2.53 billion before $3.3 billion in one-time charges for the spin-off of auto parts maker Visteon and a restructuring in Europe.