Ford Motor Co., Dearborn, MI, today reported a first quarter net loss of $1.4 billion, or $0.60 per share. This compares with net income of $70 million, or $0.03 per share, in the first quarter of 2008.
Ford’s first quarter 2009
pre-tax operating loss, excluding special items, was approximately $2 billion,
a decline from a profit of $686 million a year ago. On an after-tax basis, Ford
lost $1.8 billion in the first quarter, or $0.75 per share, compared with a
profit of $477 million, or $0.20 per share, a year ago.
“Our results in the first
quarter reflected the extremely difficult business environment and weak demand
for autos around the world,” said Ford President and CEO Alan Mulally. “Despite
the challenges, Ford made strong progress on our transformation plan by gaining
share with strong new products, slowing operating-related cash outflows,
reducing outstanding debt, lowering our structural costs and reaching new
agreements with the UAW.”
Ford finished the first
quarter with $21.3 billion in Automotive gross cash and reiterated that based
on current planning assumptions it does not expect to seek a bridge loan from
In the first quarter, Ford
took a number of actions to strengthen its overall business, and also started
discussions with interested parties regarding the sale of Volvo.
Ford and Ford Motor Credit
Co. executed actions to reduce Ford’s debt obligations by $10.1 billion at par
value and lower the company’s annual cash interest payments by more than $500
million. Of that $10.1 billion, $2.4 billion in debt obligations were reduced
in the first quarter and will be reflected in Ford’s first quarter financial
statements. The remainder was reduced on April 8, 2009, and will be reflected
in Ford’s second quarter results. In addition, as previously announced, Ford
drew $10.1 billion under its secured revolving credit facility, providing
protection against the instability of the capital markets and the uncertain
state of the global economy.
In addition, Ford negotiated
and ratified modifications to its collective bargaining agreement with the
United Auto Workers union that will lower the company’s overall labor costs in
by about $500 million annually. The company announced a new buyout program for U.S. hourly
employees that will be completed in the second quarter. Ford also reached an
agreement in principle with the UAW which, subject to court and other
approvals, that would allow the company to settle up to half of its future cash
VEBA obligations with Ford common stock.
Based on current planning
assumptions, Ford said it remains on track to meet or beat its financial
targets, including the target for its overall and North American Automotive
pre-tax results to be breakeven or better in 2011, excluding special items.
For more information, visitwww.ford.com.