Ford's loss smaller than estimated

Ford Motor Co. announces a lower than expected first quarter loss raising the prospect of going through recession with no government aid. Lewis Booth, the US giant automaker's chief financial officer told reporters on Friday that he expected a USD 3.7 billion cash burn rate in the first quarter to be worst for the year. "This is a fantastic performance," John Wolkonowicz, an IHS Global Insight analyst in Lexington, Massachusetts, said. "They're burning cash at a much lower rate. They're going to come out of this OK. I now believe they won't need a government handout." Ford, the only major US automaker not receive federal loans to help it avoid bankruptcy, posted net losses of USD 1.4 billion, or only 60 cents a share. Revenue fell to USD 24.8 billion from USD 39.2 billion, excluding special items, as Ford slashed North American production by half. The average analyst estimate was for USD 23.2 billion. Still, the latest losses come on top of USD 30 billion in net losses the company reported from 2006 through 2008. The report also once again showed Ford is in far better shape to weather the crisis in the global auto industry than Chrysler LLC and General Motors, its two US-based rivals. The US President Barack Obama in a recent address told his audience at Georgetown University in Washington, DC. That despite the upcoming tough times he could see light at the end of the tunnel. "There is no doubt that times are still tough," Obama said adding that "By no means are we out of the woods just yet. But from where we stand, for the very first time, we are beginning to see glimmers of hope."