Double Breaking! Ford Earnings Restatement Doubles Second Quarter Loss


Late yesterday,Dearborn's biggest employer announced its second-quarter loss was a bit more than the numbers CFO Don LeClair and CWFO (Chief Way Forward Officer) Mark Fields reported earlier this month. Thus, it's now necessary to file a new earnings report with the SEC. And by "a bit more" we mean it went from a loss of $131 million to a loss of $254 million. How do you miss that one? Wait...there's an explanation here somewhere...ah, here it is. FoMoCo said the reason behind the shift from not profitable to even less profitable was due to "higher than expected estimates for pension curtailment loss." Basically, pensions cost the company more than they thought from all of those early retirements. You know, that's kinda like the one thing they should have known...

...was going to be an issue. We mean, come on, they only had published charts lining up the benefit/payout to years of service. Why wouldn't that be difficult to discern, right?

But what's really weird is Bill Fords baby initially showed a loss due to "fewer sales of large sport utility vehicles coupled with one-time employee buyout costs." Why do wethinks maybe the first loss was just the "fewer sales" part? Just a guess.

Ford doubles loss; hires M&A expert [CNN/Money]

Related:
Breaking! Ford Second Quarter Losses $123 Million; Worse Than Expected; The Ford Earnings Call: The Way Forward Is Even Better Than The Real Thing [internal]