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Post by cobra8 on Oct 13, 2011 15:36:28 GMT -5
This is an article from Bloomberg dated (this past spring) - March 4th 2011 www.bloomberg.com/news/2011-03-03/ford-s-accounting-revision-may-add-13-billion-to-profit-tax-expert-says.htmlA few paragraphs: after earning $9.3 billion in the last two years, may make an accounting change this year to reflect confidence in its recovery, a move one tax expert said could boost its 2011 profit as much as $13 billion. Ford in the second half may eliminate from its balance sheet a valuation allowance held against deferred tax assets, it said in a federal filing this week. The reserve was created in 2006 as Ford began four years of operating losses. Eliminating the allowance may add $10 billion to $13 billion to Ford’s net income this year, said Robert Willens, president of Robert Willens LLC of New York, a corporate tax specialist.
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Post by cobra8 on Oct 13, 2011 16:37:19 GMT -5
I do not like the Idea we (UAW) are the problem. I know things got bad but some poor investment decisons cost this company billions and we (U.S. hourly workers) had nothing to do with it. Jaguar - Land Rover Loss www.nytimes.com/2008/03/27/business/worldbusiness/27auto.htmlA couple paragraphs: Tata Motors, part of India’s fast-growing Tata Group, is buying Jaguar and Land Rover from the Ford Motor Company for $2.3 billion — about half what Ford paid for the brands when it bought them. Ford will give Tata an additional $600 million to make up for shortfalls in pension plans when the deal is done, expected in the middle of this year Volvo loss articles.nydailynews.com/2010-08-03/news/27071480_1_china-s-geely-swedish-car-tata-motorsA couple paragraphs: Ford confirmed yesterday it had completed a $1.5 billion deal to unload Volvo to China's Geely, signaling an end of an era and China's biggest acquisition of a foreign car maker. The last time Volvo made an annual profit was in 2005. Ford paid $6.5 billion for Volvo in 1999. I count up about an 8 billion loss from these 3 brands now add back in the 13 billion accounting update and there is 21 billion of the loss we all took and voted for cuts in our pay & benefits, to do what we were asked. I look for Ford to wait for ratification to show the $13 billion accounting profit.
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Post by TonyV on Oct 13, 2011 23:18:35 GMT -5
Getting rid of consistantly losing entities will prove to be a winner in the future. Although in the short term I questioned it too, the constant loss would have been far worse for Ford. I disagree with a lot of the decisions of the '90's.(Hindsight is 20/20...) It is good to see that the company has learned from their past mistakes. Getting the extra costs of that 'group' off the books was a great way to stop the bleeding.
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