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Ford warns of worse than expected fourth quarter

Ford Motor Company announced today it expects fourth quarter results to be worse than it had previously forecast.

It said it expected to make a loss of 50 cents a share. Previously, the company said it expected fourth quarter operating results to improve from the third quarter loss of 28 cents a share, although earning a profit would be 'difficult'. The 28 cents a share loss was said by analysts to equate to $502m (£354m).

The primary reason for the lower forecast, the company said, is increased credit loss reserves reflecting weakened US economic conditions and high marketing and product costs.

The warning came as the company works on a restructuring plan, due to be unveiled in January, that is almost certain to include massive job cuts.

With the fourth-quarter loss, Ford will have reported three consecutive quarterly losses for the first time since 1992.

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