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Ford Australia falls into $274m loss
FORD Australia plunged to a $274.4 million loss last year as buyers shunned large cars and the company wore a $162.2m restructuring charge to restore its fortunes.
The collapse in the stockmarket also forced the company to spend $151m propping up its superannuation scheme for workers.
Ford Motor Company of Australia, which is wholly owned by Ford in the US, said losses more than tripled from $87.2m in 2007 as sales revenue fell 7.4 per cent to $3.06 billion.
But the company said it had “proactively restructured its operations” in the past year.
“It is well positioned to operate efficiently despite lower industry volumes and the global financial crisis,” the company said in a report filed with the Australian Securities and Investments Commission.
It said the one-off $162.2m restructuring charge included writedowns on the value of some assets. Ford was also forced to top up its super fund, which pays workers defined benefits.
Ford said it had the continued support of its troubled parent company in the US, which provides its Australian arm with a revolving $900m loan.
“Our current cash flow forecasts indicate a return to positive operating cash flows in 2009,” the Australian company said. “Furthermore, if required, we could receive additional support from Ford US to continue our operations.”
FORD Australia plunged to a $274.4 million loss last year as buyers shunned large cars and the company wore a $162.2m restructuring charge to restore its fortunes.
The collapse in the stockmarket also forced the company to spend $151m propping up its superannuation scheme for workers.
Ford Motor Company of Australia, which is wholly owned by Ford in the US, said losses more than tripled from $87.2m in 2007 as sales revenue fell 7.4 per cent to $3.06 billion.
But the company said it had “proactively restructured its operations” in the past year.
“It is well positioned to operate efficiently despite lower industry volumes and the global financial crisis,” the company said in a report filed with the Australian Securities and Investments Commission.
It said the one-off $162.2m restructuring charge included writedowns on the value of some assets. Ford was also forced to top up its super fund, which pays workers defined benefits.
Ford said it had the continued support of its troubled parent company in the US, which provides its Australian arm with a revolving $900m loan.
“Our current cash flow forecasts indicate a return to positive operating cash flows in 2009,” the Australian company said. “Furthermore, if required, we could receive additional support from Ford US to continue our operations.”
