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Ford Predicts Quarterly S. American Loss
Ford Motor Co. will post a $300 million operating loss in South America in the current quarter compared with a $54 million profit a year earlier, according to Joe Hinrichs, president of the company's Americas unit.
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Ford Motor Co. will post a $300 million operating loss in South America in the current quarter compared with a $54 million profit a year earlier, according to Joe Hinrichs, president of the company's Americas unit.
Hinrichs tells an auto conference in New York City that Venezuela's currency devaluation is the largest factor in Ford's deteriorating results in the region. But the company still expects to break even in South America for the full year despite Brazil's rising inflation, excess capacity and intensifying competition.
Hinrichs predicts Ford's North American auto unit will maintain its recent ratio of adjusted pretax earnings to revenue at 8%-10%, including an operating margin of about 10% this year.
Separately, Hinrichs notes that Ford has reduced its costs in the region by more than $8.5 billion since 2005 and streamlined global product development. He says that the vehicles that account for 85% of the company's worldwide volume now ride on nine platforms.
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