FED: Ford Australia posts one of its biggest losses - report
20 Jun 2009 3:45 AM
Subject: FED: Ford Australia posts one of its biggest losses - report FED: Ford Australia posts one of its biggest losses - report
SYDNEY, June 20 AAP - Ford Australia has posted one of its biggest losses, despite receiving a $122.4 million financial boost from the federal government.
Accounts filed this week to the Australian Securities and Investments Commission show that Ford's local operation generated a net loss of $274.4 million last year on lower car sales and a blowout in superannuation costs, News Ltd reports.
The disappointing result for the year that saw the launch of the FG Falcon was official confirmation Ford is struggling to maintain its presence as a large car maker.
Moreover, it is under liquidity pressure with its short-term liabilities on its December balance almost double the value of its short-term assets, News Ltd says.
Despite that liquidity problem the directors indicated the company would be able to meet its financial obligations and could borrow more cash from its US parent if required.
"We have concluded that there is no significant uncertainty about Ford Motor Company of Australia's ability to continue as a going concern, and our financial statements have been prepared on a going concern basis," the directors stated in the accounts.
In a brief commentary on performance, the directors highlighted the negative impact of last year's share market meltdown on the result.
Most of Ford's Australian employees are on defined benefit retirement schemes, which meant the company had to inject more than $151 million to make up for the sliding value of superannuation investments.
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FED: Ford Australia posts one of its biggest losses - report