Ford Posts a Loss of $326 Million for Quarter

Ford Motor Co. posted a $326-million loss in the third quarter Wednesday, but its results before one-time expenses topped Wall Street predictions--just as rival General Motors Corp. did a day earlier.

The world’s two largest automakers also face similar concerns over mounting pension liabilities. Such worries on Wednesday prompted Standard & Poor’s to lower GM’s long-term credit rating and announce that it was reviewing Ford’s rating to see if it should be lowered.

The major automakers have seen their share prices battered in recent weeks on concerns about industry growth and the overall economic picture. To compete for customers in the sluggish economy, Ford, GM and DaimlerChrysler’s Chrysler unit continue to offer lucrative incentives, squeezing profits.

Ford’s loss of 18 cents a share in the quarter largely reflected losses related to the sale of its European vehicle repair business, Kwik-Fit. The No. 2 automaker lost $692 million, or 39 cents a share, in the year-earlier period.

Revenue rose 9% to $39.6 billion from $36.3 billion. Vehicle sales also rose 9%, to 1.65 million units.

“The fundamentals of our business are improving, as evidenced by increases in our revenue and vehicle sales, improvements in our market share and tangible progress on cost efficiencies,” Chairman and Chief Executive Bill Ford said. “While we’re pleased with our progress, we continue our work with a strong sense of urgency to restore our business to its full potential.”

Excluding a $525-million charge related to Kwik-Fit and other one-time expenses, Ford had an operating profit of $220 million, or 12 cents a share, contrasted with a loss last year of $502 million, or 28 cents.

The consensus forecast of analysts surveyed by Thomson First Call was that Ford would earn 3 cents a share from operations in the latest quarter.

On Wednesday, shares of Ford and GM fell nearly 7% in trading on the New York Stock Exchange. Ford shares fell 61 cents to $8.26, and GM lost $2.56 to $34.14.