Ford Motor Co on Friday reported its biggest quarterly loss in over four years as it took $2.5 billion in charges for job cuts and plant closings at the start of a massive restructuring effort.
Excluding the anticipated charges, Ford's results fell short of Wall Street expectations, underscoring analyst concerns about the weakness of its auto operations and sending shares down as much as 6 percent in early trading.
Ford's vehicle sales dropped by 6 percent, reflecting steeper spending on incentives and discounts and lower-margin sales to commercial fleets and car rental companies.
Ford, which is closing 14 plants and cutting up to 30,000 factory jobs in North America, posted a first-quarter net loss of $1.19 billion, or 64 cents per share, compared with a profit of $1.21 billion, or 60 cents per share, a year ago.
The loss was Ford's largest since the fourth quarter of 2001, when it posted a $5 billion loss on charges for an earlier restructuring that coincided with the start of Chief Executive Bill Ford Jr's tenure at the helm of the company his great grandfather founded.
Analysts said the results spotlighted intensifying pressure on Ford's US auto business.
Ford's earnings from continuing operations were 24 cents per share, short of average Wall Street analysts' view of 26 cents a share as tracked by Reuters Estimates. Revenue fell 9 percent to $41.1 billion from $45.1 billion a year earlier.
One-time charges reduced earnings by 88 cents per share in the first quarter, or $1.65 billion on an after-tax basis.
The results were Ford's first since the automaker announced its restructuring plan, dubbed the "Way Forward."
Ford, which expects to take a total of $3.4 billion in restructuring charges this year, posted first-quarter profits in both Europe and Asia.
The balance sheet reflected Ford's initial charges, with cash and equivalents dropping to $21.2 billion on a consolidated basis from $28.4 billion a quarter earlier.
Ford's US vehicle sales fell almost 3 percent in the first quarter. Although global sales rose slightly to 1.72 million units, revenue fell almost 6 percent to $37 billion.
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