Another big U.S. automaker is paying for a foray into Europe.
said Wednesday its investment in money-losing British repair chain Kwik-Fit caused it to post a loss in the third quarter. The disclosure came one day after
was forced to write down its investment in
by more than $2 billion.
Including the charge, Ford lost $326 million, or 18 cents a share, in the quarter, compared to a loss of $692 million, or 39 cents a share, in the same quarter last year. Without the charge, but including certain other items, Ford earned $220 million, or 12 cents a share, well ahead of analysts' 3-cent estimate. Revenue rose 9% to $39.58 billion from $36.32 billion.
The Kwik-Fit expense wasn't the company's only bombshell. Ford also revealed that the return on its pension fund assets was negative 15% so far this year, leaving it underfunded to the tune of $6.5 billion. Ford said its $25.7 billion in cash would cushion the impact of the deficit.
For said third-quarter vehicle sales rose 9% to 1,657,000 units.
The company expects a slight profit for the fourth quarter, and a full-year profit of about 40 cents a share. Analysts surveyed by First Call had been expecting earnings of around 13 cents a share in the fourth quarter and 43 cents for the year.
"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," Bill Ford, chairman and chief executive, said in a release. "While we are pleased with our progress, we continue our work with a strong sense of urgency to restore our business to its full profit potential."