Ford Posts $1.4 Billion 1Q Loss, Burns Through Less Cash While Restructuring Without Gov't Aid

By KIMBERLY S. JOHNSON and TOM KRISHER, AP Auto Writers

DEARBORN, Mich.

Ford Motor Co. reported a first-quarter loss of $1.4 billion Friday and said it burned through less of its cash, emphasizing that it doesn't expect to seek any of the government assistance that is keeping the rest of the Detroit Three alive.

The nation's second-largest automaker said it 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 $1.03, or 23 percent, to $5.52 in premarket trading.

Chief Financial Officer Lewis Booth said the company is confident that it will slow the drain on its cash 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."

While General Motors Corp. and Chrysler LLC have accepted $17.4 billion in federal aid and are racing toward deadlines to make deep cuts or file for bankruptcy, Ford was the first U.S. automaker to modify its contract with the United Auto Workers union and strike a deal to make up to 50 percent of payments to a union-run health care trust in stock instead of cash. The company also completed tender offers to reduce its debt by more than one-third.

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AP: http://kdrv.com/news/national/story-111061