Crawford
10-21-2002, 02:41 PM
This looks kind of bad:
(from MSNBC Oct. 21st)
Ford to cut $1 billion from overhead
Automaker looks to offset further economic downturns
DETROIT, Oct. 21 — Ford Motor Co. Chairman and Chief Executive Bill Ford Jr. said on Monday he was seeking an additional $1 billion in cuts from the automaker’s overhead costs next year to offset any possible downturn in the U.S. economy.
FORD, GREAT-GRANDSON OF COMPANY founder Henry Ford, made the comments at a meeting of Wall Street analysts and investors called by the automaker to tout its plan for growing profits to $7 billion a year before taxes by mid-decade, a plan that already includes at least $6 billion in cost cuts.
“I have no idea what next year’s going to hold...We are notoriously poor predictors,” Ford said. “But I’ve gone back to our folks and said I need more, we need more, to make sure next year is robust.”
Ford said the cuts, if made, would come from “general overhead,” and not from product development funds. He said a list of possible cuts was being drawn up for review, but declined to specify what might be included.
Company spokesman David Reuter said it was not clear yet how the cuts, first announced with Ford’s third-quarter earnings, would fit into the rest of Ford’s turnaround plan. The plan already calls for $1.5 billion in overhead cost cuts.
Ford’s stock and bond prices have fluctuated widely over the past three weeks as investors grew nervous about the pace of the automaker’s turnaround plan and the health of its Ford Credit arm.
(from MSNBC Oct. 21st)
Ford to cut $1 billion from overhead
Automaker looks to offset further economic downturns
DETROIT, Oct. 21 — Ford Motor Co. Chairman and Chief Executive Bill Ford Jr. said on Monday he was seeking an additional $1 billion in cuts from the automaker’s overhead costs next year to offset any possible downturn in the U.S. economy.
FORD, GREAT-GRANDSON OF COMPANY founder Henry Ford, made the comments at a meeting of Wall Street analysts and investors called by the automaker to tout its plan for growing profits to $7 billion a year before taxes by mid-decade, a plan that already includes at least $6 billion in cost cuts.
“I have no idea what next year’s going to hold...We are notoriously poor predictors,” Ford said. “But I’ve gone back to our folks and said I need more, we need more, to make sure next year is robust.”
Ford said the cuts, if made, would come from “general overhead,” and not from product development funds. He said a list of possible cuts was being drawn up for review, but declined to specify what might be included.
Company spokesman David Reuter said it was not clear yet how the cuts, first announced with Ford’s third-quarter earnings, would fit into the rest of Ford’s turnaround plan. The plan already calls for $1.5 billion in overhead cost cuts.
Ford’s stock and bond prices have fluctuated widely over the past three weeks as investors grew nervous about the pace of the automaker’s turnaround plan and the health of its Ford Credit arm.