http://www.bloomberg.com/apps/...nPEOVzfNnDE&refer=home
So ford profits 100 million...
And new home sales fall to the lowest sine 1990's!
Sheesh...
Ford Posts $100 Million Profit
Ford has cut 46,300 jobs in North America the past two years and in 2007 negotiated a new labor contract to reduce U.S. labor expenses. Most of the cost savings of the accord with the United Auto Workers haven't kicked in.
That agreement calls for Ford to shed retiree health-care obligations to a union-run fund that will be formed in 2010. Ford said today an additional 4,200 UAW-represented employees in the U.S. accepted buyouts during the first quarter.
The first-quarter results included $416 million in costs Ford considered one-time items. There were $223 million in job - cutting expenses and $108 million to reduce the number of U.S. dealers.
Isn't it funny how they say cut 46K jobs in North America like they don't want to tell you that 99% of all the jobs they cut were in the USA!
http://www.nytimes.com/2008/04...ess/24econ-web.html?hp
Mean while....
New-Home Sales Fall to Low Last Seen in 1990s..........
ales of new homes in March plummeted to the lowest level since the housing recession of the 1990s, the government said on Thursday, as inventories rose to the highest point in more than a quarter century.
Buyers vanished from the housing market last month at a swift rate. Sales of new homes fell 8.5 percent, a far sharper decline than economists had forecast.
Sales are running at an annual rate of 526,000 after adjusting for seasonal factors, the lowest point since October 1991.
Adding to the gloom, the Commerce Department lowered its initial estimate for February sales as well, to a 5.3 percent decline from 1.8 percent.
At the current sales rate, it will take 11 months for builders to work off the current backlog, the biggest inventory pile-up since 1981.
?The housing sector will continue to act as deadweight on overall growth throughout the remainder of 2008,? an economist at IdeaGlobal, Joseph Brusuelas, wrote in a note to clients.
Sales fell in every region of the country, with the Northeast suffering the steepest drop, 19.4 percent.
Prices continue to fall as well, which could discourage would-be buyers from entering the market. The median price of a new home dropped in March to $227,600, down 13.3 percent from a year ago. That drop followed price declines of 2.6 percent in February and 8.5 percent in January.
The housing slump, coupled with the current slowdown, have weighed heavily on manufacturing, as Americans shy away from large purchases.
Facing a sharp drop in demand, many businesses have become reluctant to make large investments in capital equipment. The government reported on Thursday that manufacturing orders fell again in March, the third consecutive monthly decline.
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OK, I find this a little troubling.........
Don't we need to keep jobs here? I mean........... How is one going to afford to buy a home with out a decent paying job? Anyone else see a relationship here?
So, is this a signal to the rest of the business ??? In order to make a profit start cutting jobs?
Is the US worker over paid? Are we going to cut back on the minimum wage? I dunno but this doesn't look good, as no new homes means plumbers, roofers, electricians, framers etc...etc.... that rely on the work not to mention the manufactures that produce the products are all going to be taking a hit ....
Dunno, the outlook isn't looking too good.