Ford loses $2.8B in 4Q, $2.7B in 2007 on North American weakness

DEARBORN, Mich. -- Ford Motor Co. said Thursday its loss narrrowed to $2.8 billion in the fourth quarter and $2.7 billion for the year amid continued weakness in North America.

Ford President and Chief Executive Alan Mulally said the company's operations are improving but the outlook for U.S. sales in 2008 is grim.

Mulally said the company will be adjusting production and making further cost reductions in North America, including a new round of buyouts for its 54,000 U.S. hourly workers.

Details of the buyout program were expected later Thursday.

Ford lost $1.30 per share in the fourth quarter, narrower than a loss of $5.6 billion, or $2.98 per share, in 2006. The full-year results, which resulted in a loss of $1.35 per share, were significantly better than 2006, when Ford lost $12.6 billion, or $6.72 per share.

Dearborn-based Ford reported revenue of $44.1 billion for the fourth quarter, up from $40.3 billion in the year-ago quarter. The company reported full-year revenue of $172.5 billion, up from $160.1 billion in 2006.

Excluding special items, Ford lost 20 cents per share for the quarter and 19 cents per share for the year, in line with Wall Street's expectations. Analysts surveyed by Thomson Financial had predicted a loss of 19 cents per share for the quarter and 17 cents per share for the year.

Special items for the year included a $705 million charge for separation programs in North America and a $208 million gain from the sale of Aston Martin.

Ford lost $3.5 billion for the year in its North American automotive operations, narrower than a loss of $6.0 billion in 2006. Ford said higher net pricing and lower costs helped offset losses from lower sales and unfavorable exchange rates. Full-year revenue for the region was $70.5 billion, up from $69.4 billion a year ago.

In the fourth quarter, Ford lost $1.6 billion in North America, compared with a loss of $2.7 billion in the year-ago quarter. Fourth-quarter revenue was $17.0 billion, up from $15.1 billion a year ago. Ford took a hit in the U.S. in 2007 when it reduced low-profit sales to rental-car fleets by a third.