Ford Loses $2.98B, Cuts Jobs

Automaker narrows losses, but results much worse than expected
By Kevin Spak,  Newser Staff
Posted Nov 7, 2008 7:41 AM CST
An unsold 2008 F-150 pickup truck sits under a sign at a Ford dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Nov. 2, 2008.    (AP Photo/David Zalubowski)
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(Newser) – Ford Motor Company’s sales plunged 22% in the third quarter, the company said today, as the struggling economy eviscerated demand. The company lost $2.98 billion, or $1.31 a share, far worse than the 93 cents-per-share analysts expected, while burning through $7.7 billion in cash, Bloomberg reports. Another round of job cuts is on the way, the company says, including a 10% reduction of its salaried-personnel costs.

That will mean both cutting jobs and reducing salaries and benefits, including performance pay, bonuses, and retirement matching funds. “We continue to take fast and decisive action,” promised Chief Executive Alan Mulally. Ford did save $2.3 billion by writing off retiree health costs, a one-time item excluded from the big operating loss figure. But “investors are focused on cash accrual and cash burn,” said one researcher.