Q1 RESULTS
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Ford Loses Just $1.4B, Turns Down Treasury Money
Automaker burns through cash but remains healthier than rivals
By Jason Farago
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Posted Apr 24, 09 6:49 AM CDT
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(Newser)
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Ford announced today a loss of $1.4 billion for the first three months of 2009—its worst Q1 result in 17 years, but nevertheless one that beat expectations, Bloomberg reports. The automaker said it expected to break even or possibly turn a profit in 2011, and it would not seek any loans from the government as its rival Chrysler prepares for bankruptcy. Ford acknowledged today that it burned through $3.7 billion in cash as the auto crisis deepened.
Although Ford lost a record $14.7 billion in 2008, it has been able to refuse government aid because it took out $23 billion in loans several years ago. The company may pick up business as Chrysler and GM remain in limbo, and sales should increase in South America and Europe, where governments are encouraging citizens to trade in old models. "Ford is doing a good job of managing through this crisis, but they’re not out of the woods yet," says one investor.