US:Ford boosts outlook for quarter, year - Ford Forums

Stacy94PGT · 09-17-2004, 07:44

Ford boosts outlook for quarter, year

Reuters

NEW YORK -- Ford Motor Co. on Friday raised its third-quarter and 2004 profit forecasts because of strength in its financial services business and cost improvements in its car operations.

Ford, which earlier in the day set plans to cut 1,150 jobs at its main Jaguar production facility in Britain, said it expects third-quarter earnings of 10 cents to 15 cents per share, up from a prior estimate of break-even to 5 cents per share.

For the full year, it expects to earn $1.90 to $2 per share, up from a previous estimate of $1.80 to $1.90.

The quarterly and annual estimates exclude any costs from the Jaguar actions and other special items.

Wall Street analysts, on average, have been expecting earnings of 9 cents per share in the third quarter and $1.99 for the full year, according to Reuters estimates.

Ford said the improvement primarily reflects continued strong performance in its financial services business and lower costs in the automotive sector, partially offset by lower production at Jaguar.

In addition to ending final assembly operations at its Browns Lane plant in Coventry, England, by the end of 2005, Ford said it would get out of Formula One racing.

The job cuts and Formula One decision together are expected to result in a pretax charge of $450 million. Ford said $375 million of the charge will be booked this year and the balance will be taken next year.

Together with previously announced 2004 special items, these actions are expected to reduce full-year 2004 net earnings by about 25 cents per share, Ford said.