Ford loss ‘record’

By John Van Klaveren
GEELONG manufacturing faces further economic gloom after Ford announced its worst recorded loss of $290 million.
The company vowed to continue making “tough decisions” to return to profitability.
The Ford loss follows concerns over 600 jobs at Point Henry’s aluminium smelter operations and Federal Government naming Shell and Alcoa among an initial 248 companies facing carbon tax liabilities.
Ford’s loss followed slumping Falcon sales, down 36 per cent to 18,741 units last year. Falcon has averaged 1100 sales a month this year, suggesting 13,500 units will sell in 2012.
Ford said the “underlying” loss was $78 million after a one-off tax adjustment of $212 million.
Ford received $103 million in state and federal support last year to continue producing Falcon and Territory domestically.
Ford Australia chief financial officer Mark Rearick said one-off restructuring costs “primarily explained” the operating loss.
“They also reflect a continuing decline in the sales of large vehicles.
“This was clearly a challenging year for the industry and for Ford as it faced significant changes in segmentation of customer preferences. The reduction in sales volumes and revenue were partially the result of the industry-wide decline in the sales of large cars.”
Ford’s previous worst result on record was a $274 million loss in 2008.
Ford Australia president Bob Graziano told a Geelong business breakfast in March that Australia was one of the most competive automotive markets in the world.
He called for more investment and intervention in the face of increasing “competitive intensity”.
Mr Graziano said Australian Government investment in the industry was a “modest” $17.80 per capita compared to other countries.