RENE JOHNSTON/TORONTO STAR
Reuters
DETROIT–Ford Motor Co. posted a smaller-than-expected first-quarter loss Friday amid the auto sector downturn and said it was on track to at least break even in 2011 and did not expect to seek U.S. government loans.
The company also said it had burned through $3.7 billion of automotive cash in the first quarter, a sharp drop from the second half of last year, and ended March with $21.3 billion in gross cash, sending its shares up nearly 18 per cent in premarket trading.
Ford posted a net loss of $1.43 billion, or 60 cents per share, for the first quarter, compared with net income of $70 million, or 3 cents per share, a year earlier.
The loss from continuing operations and excluding one-time items came to 75 cents per share. Analysts on average expected a loss of $1.23 on that basis, according to Reuters Estimates.
"Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world," Chief Executive Alan Mulally said in a statement.
Still, Chief Financial Officer Lewis Booth called the results encouraging and said the automaker expected the first quarter to have the worst cash burn of the year.
Rather than the quarterly results, investors are more focused on Ford's liquidity, its full-year outlook for U.S. auto industry sales and its ability to navigate the economic downturn. The struggles of rivals General Motors Corp (GM.N) and Chrysler are at the center of Wall Street's attention.
Ford has not sought U.S. government aid, setting it apart from GM and Chrysler, which are operating on $17.4 billion of federal loans and have sought more to stave off bankruptcy.
Reuters
DETROIT–Ford Motor Co. posted a smaller-than-expected first-quarter loss Friday amid the auto sector downturn and said it was on track to at least break even in 2011 and did not expect to seek U.S. government loans.
The company also said it had burned through $3.7 billion of automotive cash in the first quarter, a sharp drop from the second half of last year, and ended March with $21.3 billion in gross cash, sending its shares up nearly 18 per cent in premarket trading.
Ford posted a net loss of $1.43 billion, or 60 cents per share, for the first quarter, compared with net income of $70 million, or 3 cents per share, a year earlier.
The loss from continuing operations and excluding one-time items came to 75 cents per share. Analysts on average expected a loss of $1.23 on that basis, according to Reuters Estimates.
"Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world," Chief Executive Alan Mulally said in a statement.
Still, Chief Financial Officer Lewis Booth called the results encouraging and said the automaker expected the first quarter to have the worst cash burn of the year.
Rather than the quarterly results, investors are more focused on Ford's liquidity, its full-year outlook for U.S. auto industry sales and its ability to navigate the economic downturn. The struggles of rivals General Motors Corp (GM.N) and Chrysler are at the center of Wall Street's attention.
Ford has not sought U.S. government aid, setting it apart from GM and Chrysler, which are operating on $17.4 billion of federal loans and have sought more to stave off bankruptcy.
