Why is this good news? Because Ford's loss is less than expected.
Ford’s $1.4 billion first-quarter loss compares with a $70 million profit last year. Ford lost $0.60 per share, compared with earnings of $0.03 a share for last year.
Meanwhile, revenue was down 37% from last year to $24.8 billion (from $39.2 billion). Ford’s U.S. sales numbers plunged 43%.
Pretax, Ford lost $0.75 a share. The good news is that analyssts polled by Thomson Reuters expected a $1.23 per share loss on revenue of $22 billion.
Ford is the only of the Big 3 automakers who have not requested funds from the U.S. government. Rather, Ford has made moves on its own to reduce its operating costs.
Ford said it cut structural costs by $1.9 billion, adding that it is likely exceed its $4 billion cost-cutting goal for the year. Fordf has also modified its contract with the United Auto Workers (UAW) union and struck a deal to make up to 50% of payments to a union-run health care trust in stock rather than cash. The company also completed tender offers to reduce its debt by more than 1/3.
Ford added that it continues to feel it can break even or post a profit on a pre-tax basis in 2011.
Recent reports indicate that fellow automaker Chrysler may enter Ch. 11 bankruptcy protection as early as next week.
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