Dallas, Texas 05/15/2014 (FINANCIALSTRENDS) –Ford Motor Company (NYSE:F) Australia has now revealed that it has almost doubled the company’s losses in comparison to the previous year. The company has made a full-year-after-tax loss of $267M, that is much worse than its $141M loss that he it reported for its 2012 financial year. The result has been dragged down by the 1 -off write-down of its manufacturing assets. It takes losses at the company over the past six years to more than $800 million. In the press release Ford put its result in the positive light, saying that the sales of the imported vehicles like the Focus, Kuga & the Ranger are now rising.
Slowdown in demand
All these growth-sectors of Ford Motor Company (NYSE:F)business has helped in offsetting the significant losses from the company’s domestic production last year to narrow the overall operational-losses to $25M said the statement. In May 2013, Ford announced closure of the Broad meadows and the Geelong manufacturing plants located in Victoria by Oct 2016, which affected 1,200 workers. The company’s annual report also indicates that due to the slowdown in the demand for locally built cars, the redundancies might start much earlier than expected. It is also probable that the matching production capacity to the demand will also result in the reduction in its employment levels,” it stated.
The company has not yet put any final figure on what hundreds of redundancies will eventually cost but it estimates between $200 & $250 million. Ford Motor Company (NYSE:F) said it that all depends on negotiation of the future labor agreements, the redeployment opportunities as well as any drops in market share.
The drop in the demand for the locally-produced cars will also see the production of the Falcon & the Territory cut by 1.3rd by the middle of 2014. Ford USA says that it will send its cheque of $300M this year. Ford Australia says that it continues to be committed to research & development in the country.