Ford CFO Says Automaker Will Show Slight Loss in First Quarter

DETROIT AP reported that Ford Motor Co.'s chief financial officer on Monday reaffirmed that the automaker would show a loss in the first quarter, but said Ford was on track to break even for the year.

"I'm not going to disagree with the overall analysts' interpretation of where we are in the first quarter," Martin Inglis said in addressing Morgan Stanley's annual automotive conference. "But I would see us getting to some form of profitability in the second half of the year."

A consensus of analysts polled by Thomson Financial/First Call estimated Ford would lose 14 cents a share in the first quarter and be up slightly at 15 cents a share for the year.

But Ford spokesman David Reuter said the automaker is proceeding cautiously and "still forecasting to break even."

Ford posted a $5.07 billion loss in the fourth quarter of 2001, or $2.81 a share, mostly due to the $4.1 billion in costs related to its restructuring plan and an additional $102 million in accounting charges.

Ford announced in January that it would close five plants in the United States and eliminate 35,000 jobs worldwide as part of the restructuring plan.

Ford is to release first quarter earnings next month.

Inglis also said Monday that retail incentives were down 26 percent, but fleet incentives were up from the fourth quarter.

"We're really focusing now on getting a more disciplined approach back into our incentives," Inglis said. "For part of the fourth quarter, a lot post Sept. 11, I have to say we had a little bit of reaction to GM. We're now back to our own par in deciding what we want to do with our incentives."

General Motors Corp., the world's No. 1 automaker, kicked off a rebate war in September, offering no-interest financing as a way to spur slumping auto sales following the Sept. 11 attacks.

Earlier this month, Ford chairman Bill Ford Jr. said he would match GM dollar-for-dollar in cash back and financing incentives.

Reuter said Monday that Ford's intent with incentives is to stay competitive, but "be more targeted and be smarter about where we put the money."

Inglis said the automaker plans to spend 5 percent to 6 percent of revenue on product, "a rate that will leave us competitive."

Last week, Ford dealers told top management at Ford that they need new products faster.