Ford Loses $1.4B In First Quarter

Struggling Automaker Spent $3.7B More Than It Received But Burned Through Less Cash

(AP)  Ford Motor Co. reported a first-quarter loss of $1.4 billion Friday and said it burned through less money while restructuring without government aid during a severe auto sales downturn.

The nation's second-largest automaker spent $3.7 billion more than it took in during the first three months of the year, far less than the $7.2 billion it spent in the fourth quarter of 2008.

Ford shares surged 76 cents, or 17 percent, to $5.25 in premarket trading.

The loss compares with a $70 million profit a year earlier. On a per share basis, Ford lost 60 cents, compared with earnings of 3 cents a share for the comparable quarter a year ago.

Revenue was $24.8 billion, down nearly 37 percent from $39.2 billion in the same quarter of last year, as U.S. sales declined 43 percent in the quarter.

Chief Financial Officer Lewis Booth said the company is confident that it will reduce its cash burn even further this year, and he said Ford will make it through 2009 without needing government aid. He would not speculate, however, about 2010.

"This is a very, very difficult environment," Booth said. "We're comfortable we'll get through this year."

Ford drew the last $10.1 billion from its revolving line of credit during the quarter and said it had $21.3 billion in cash as of March 31. That's down from $28.7 billion in the same period last year.

Booth said the company narrowed its loss from roughly $6 billion last quarter primarily due to cost cuts and better pricing for its vehicles. He said he expects continued improvement for the remainder of the year.

On a pretax basis, Ford lost 75 cents a share, beating analysts estimates. Eleven analysts polled Thomson Reuters expected a $1.23 per share loss on revenue of $22 billion.

Special items improved earnings by $362 million, including a $1.1 billion on gain on its March debt exchange. That gain was offset by a $664 million impairment charge due to a reduction in the book value of its Swedish Volvo unit. Ford classified Volvo as "held for sale," meaning that it's likely the unit will be sold in the next 12 months.

[sjc_1]

I checked some local Ford dealers for Escape and Fusion hybrids. They have them on the lot and at competitive prices. A Fusion hybrid is selling for about what a Camry hybrid is priced at. Too bad no one is buying cars any more.

[Mike20002000]

I finally found the perfect site to track corporate earings results. check it out...

http://fortune500earnings.com

[oftencensord]

A couple of months ago Ford stock was selling below $2, now its $5.25. that's a 150% gain. What is surprising is that more investors did not jump in.... why? Because the FED has their fingers in the pot adding uncertainty to the fate of GM and Chrysler.

We have the US Government pumping money into these car companies, buying them time, yet the car companies have yet to slash the prices on the excess inventory and really spur business. So we the tax payers are being robbed by giving tax dollars to the car companies to keep their prices high. They will sit on that inventory as long as the US Government will keep paying them.

Does Obama want to create a "Freddie & Fannie Motor Company" ? Make a peoples car like Germany did. Is that what meant about helping them re-tool ?

[sjc_1]

"Ford drew the last $10.1 billion from its revolving line of credit during the quarter and said it had $21.3 billion in cash as of March 31. That's down from $28.7 billion in the same period last year. "

Several years ago Ford hocked everything, including the blue oval logo trademark on every car grill. They bet the farm that they could retool and restyle and get it back. That was before the deck was stacked against everyone in the car business and every business in the world.

[pete_in_az]

Enough with the bad mouthing ford. They are GM or Chrysler, and they have a great product mix, great cross brand parts usage (ford edge mazda cx volvo xc90 platform for example). They saw this coming a long time ago. They are in no worse shape then Honda or Toyota. If/when sales pick up they will be fine.

[whitemale08]

Thanks Nixon/Ronnie/Bush I/Bush II/Hannity/Limbaugh.

thanks alot for embracing 'globalization' and 'busting up unions' for the 'bottom-line'.

[WayAround]

Do you remember the days before trillion dollar handouts when a $1.4 billion quarterly loss would have been horrendous news?

We've become desensitized (it's part of the plan).

[czechtraveler]

bye bye Ford

[grabandgo]

How many billions do you lose before you think you have a problem?

[talk_down_2_you]

Hey, I'm about to lose my job and my retirement portfolio has gone bust, great time to run out an d buy a new car!