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| Ford reports loss as sales slide | Ford reports loss as sales slide |
| (31 minutes later) | |
| Carmaker Ford has announced a net loss of $1.4bn (£0.96bn) for the first three months of this year as sales were hit hard during the severe recession. | Carmaker Ford has announced a net loss of $1.4bn (£0.96bn) for the first three months of this year as sales were hit hard during the severe recession. |
| This compares with the profit of $70m that the company made in the same period last year. | This compares with the profit of $70m that the company made in the same period last year. |
| Despite the loss, the results were much better than analysts had expected. | |
| Carmakers across the world have been struggling to cope with a massive slump in demand for cars as consumers hold back on making expensive purchases. | Carmakers across the world have been struggling to cope with a massive slump in demand for cars as consumers hold back on making expensive purchases. |
| Ford shares soared by 20% in pre-market trading, reflecting how well the company has performed in the eyes of investors. | |
| Cost cutting | |
| Indeed the first quarter results represent a significant improvement over its performance in the final quarter of last year. | |
| We do not expect to seek a bridge loan from the US government Ford | |
| During those three months, Ford lost $5.9bn. Over the whole of 2008, the carmaker lost a record $14.6bn. | During those three months, Ford lost $5.9bn. Over the whole of 2008, the carmaker lost a record $14.6bn. |
| "Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world," said Ford boss Alan Mulally. | "Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world," said Ford boss Alan Mulally. |
| The carmaker has been slashing costs in an attempt to offset the slump in sales, and cut its debt obligations by $10.1bn during the quarter. | |
| "Ford made strong progress on our transformation plan by gaining share with new products, reducing outstanding debt, lowering our structural costs and reaching new agreements with the United Auto Workers [union]," Mr Mulally added. | |
| Ford Europe's market share rose to 9.4%, its highest level in nearly ten years, with the Ford Fiesta becoming the continent's best selling car in March, the carmaker said. | |
| The overall quarterly loss for the European arm of the company was $550m, compared with a profit of $737m a year ago. Revenue was $6bn, down from $10.2bn. | |
| Overall revenue fell to $24.8bn from $39.2bn in the same period last year. | |
| Government loans | |
| Two of biggest rivals, General Motors and Chrysler, have taken billions of dollars in US government aid and still face bankruptcy. | Two of biggest rivals, General Motors and Chrysler, have taken billions of dollars in US government aid and still face bankruptcy. |
| As yet, Ford has not taken any money from the government. | As yet, Ford has not taken any money from the government. |
| The latest results show that the company has $21.3bn in cash and reiterate that, "based on current planning assumptions, it does not expect to seek a bridge loan from the US government". | The latest results show that the company has $21.3bn in cash and reiterate that, "based on current planning assumptions, it does not expect to seek a bridge loan from the US government". |
| The carmaker also asserted that it would "remain on track to meet or beat its financial targets." | |
| These include at least breaking even in 2011, excluding special items. |