Ford Revises 2Q, Doubles Loss

The automaker records an increase in its pension curtailment costs.
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Ford Motor

(F) - Get Report

revised its second-quarter results to more than double its loss for the period, reflecting an increase in estimates of its pension curtailment costs.

The automaker also confirmed that it has hired an adviser to help with a turnaround, and that it expects its luxury division to be unprofitable for the year.

Ford said in a regulatory filing Wednesday that it widened its loss for the second quarter to $254 million, or 14 cents a share, from the $123 million, or 7 cents a share, it reported July 20.


original second-quarter numbers included a charge of $315 million, or 11 cents a share, associated with pension curtailments tied to the company's buyout offers to employees. The charge represents the impact of earlier retirements, enhanced benefits and the accelerated recognition of future services costs.

The company said Wednesday that the additional $131 million loss stems from higher estimates of these costs, as well as "subsequent events with respect to conditions that existed as of the date of our balance sheet."

As a result of the increased pension estimate, Ford said Wednesday that it now expects its full-year costs to be $1.2 billion, up from a prior projection of $1 billion.

Separately, Ford announced that it hired

Goldman Sachs

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veteran Kenneth Leet to serve as an adviser to Chairman and CEO Bill Ford.

"In his new role as an advisor, Mr. Leet will report directly to Bill Ford and work closely with senior management in exploring a broad range of strategic alternatives for the company," Ford said in a press release.

The Wall Street Journal

reported Leet's hiring in its Wednesday editions. The newspaper reported that Leet's team will consider selling underperforming brands and pursuing alliances with other automaker, similar to

General Motors'

(GM) - Get Report

talks with Nissan and Renault. According to the


, Leet's first job will be to review Ford's luxury Jaguar brand.

Ford, in its release, didn't provide details of Leet's potential plans. The company did say in its Securities and Exchange Commission filing Wednesday, though, that it now expects its Premier Automotive Group segment to be unprofitable for 2006. The company previously said that the division -- which includes Jaguar -- would be profitable, but close to break even, on a pretax basis for the year.