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.September 22, 2004
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Ford Announces Details Of Jaguar Improvement Actions

2005 Jaguar XJ8 - Photo: Ford

 

DEARBORN, Mich. - Ford Motor Company and its Jaguar Cars unit announced today improvement actions for Jaguar and, separately, an increase in its third-quarter and full-year financial guidance for 2004.

Jaguar Actions

In a separate release issued earlier today, Jaguar Cars announced a series of actions aimed at improving its business fundamentals. The actions included:

 

  • Cessation of final assembly operations at the Browns Lane plant by year-end 2005; these operations will be consolidated into Jaguar's Castle Bromwich plant.

  • Total personnel reductions of approximately 1,150, including those related to the consolidation of assembly operations.

  • A reduction of 15,000 units in Jaguar's remaining production plan for 2004.

  • Ford's exit from Formula One racing activities, including the sale of those operations.

The personnel reductions and the Formula One decision together are estimated to result in a charge to pre-tax income of approximately $450 million. Of this, it is expected that approximately $375 million of these charges are to occur this year, with the remainder occurring next year. Together with previously announced 2004 special items, these actions are expected to reduce full-year 2004 earnings by about 25 cents per share.

2004 Earnings Outlook

Separately, the company announced it is raising its third-quarter earnings guidance by 10 cents per share, from a range of breakeven to 5 cents per share to a range of 10 to 15 cents per share, in each case from continuing operations, excluding special items.

As a result, full-year earnings now are expected to be in the range of $1.90 to $2.00 per share, compared with previous guidance of $1.80 to $1.90 per share, in each case from continuing operations, excluding special items. The improvement primarily reflects continued strong performance in Financial Services and improved cost performance in the Automotive Sector, partially offset by lower production at Jaguar.

(September 17, 2004)


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