Ford Turnaround Plan Pays Off

A loss is a win for Ford this morning, as the company's shares soared nearly 10% on smaller-than-expected first-quarter losses. Investors see the $282 million net loss—down from $1.4 billion in first quarter 2006—as a sign the company's ambitious turnaround plan is on track.

CEO Alan Mullaly has led a massive restructuring effort—cutting jobs, closing plants, and revamping the company's most popular lines—that is apparently starting to reap benefits. Revenue went up nearly 5%, even as sales volume fell, thanks in part to record profits at Ford's luxury group, which manages Jaguar, Land Rover and Volvo. (More auto industry stories.)