gave investors and analysts a look into the crystal ball Thursday, identifying two big one-time charges totaling about $3.3 billion after taxes that it will take against its second-quarter earnings.
The auto giant, however, did not suggest that earnings would significantly differ from analysts' expectations. Dearborn, Mich.-based Ford is expected to report earnings of $1.95 a diluted share, according to the consensus estimate of Wall Street analysts surveyed by
First Call/Thomson Financial
Some analysts said that both charges had been expected, and that they don't fall outside of the anticipated range.
"Ford had already been pretty straight forward with all this information about
and the changes in Europe, it's been expected for some time now. This won't cause any significant changes to earnings expectations," said David Garrity, analyst at
Dresdner Kleinwort Benson
Wall Street shrugged off the news, which was announced Thursday midafternoon. Shares of Ford slipped 1/8, or 0.3%, to close at 48 3/16.
The first charge of roughly $2.3 billion after taxes is related to the spinoff of auto components maker Visteon. Ford, which had fully-owned Visteon, distributed shares of the parts maker to its shareholders on June 28. The charge will reflect the difference in its investment in Visteon and the market value of Visteon stock on the spinoff date.
Ford will also take a $1 billion aftertax charge related to a business review and restructuring of its European operations. The charge included costs associated with layoffs and an exit from some product lines.
"With the plan in place to improve efficiency and reduce overcapacity as well as fixed costs, and the acceleration of an extraordinary product offensive representing 45 significant new products over the next five years, we are confident our European operations are driving toward sustained profitable growth," Jac Nasser, president and chief executive of Ford, said in a statement.
The company is expected to report second-quarter earnings next Wednesday, July 19.