BREAKING NEWS: Ford reports loss of $123 million

Gas prices have SUV sales taking a huge hit, and employee buyouts are expensive, to sum up what Ford Motor Company said as it reported its less-than-stellar second-quarter, a period for which the automaker posted a $123 million loss. Ford's sales for the second quarter of 2006 are down 7 percent over the same period last year, making it difficult for the company to overcome the costs of trying to close 14 plants and cut its ranks by 30,000 workers.

The loss will likely prove to be a tough pill for Wall Street to swallow compared with its $946 million profit posted second quarter of last year. Ford chairman and CEO William Clay Ford, Jr. indicated that the company would be ready to discuss further turnaround measures within the next 60 days.

[Source: Reuters via Automotive News]

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