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Ford Motors reports 1.4 billion dollar loss: better than expected

Business Materials 24 April 2009 21:45 (UTC +04:00)

Ford Motor Company, trying to avoid the fate of Chrysler and GM, Friday posted a 1.4-billion-dollar first quarter loss that was, however, better than analysts had expected, dpa reported.

Revenues dropped 43 per cent compared to the same period last year, to 24.8 billion dollars, the company said.

In Europe, earnings dropped by 550 million dollars, compared to the 739 million dollars earned from the region in the first quarter of 2008.

Overall Ford sales outside the US fell by 36 per cent in the first quarter, to 973,000 vehicles.

Ford said it had cut cash consumption by 49 per cent to 3.7 billion dollars compared to the last quarter of 2008. It cited more efficient manufacturing and engineering, and 700 million dollars saved by offering fewer sales incentives.

Ford rivals Chrysler and General Motors - recipients of 22 billion dollars in government bail-outs - face possible bankruptcy proceedings next Thursday and June 1 respectively as the federal government presses them to become viable.

But Ford until now has not needed to put its hand out, drawing on deep cash reserves. Ford also negotiated deals with its workers to slash labour costs by 500 million dollars a year.

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