Ford’s 1Q Profit Drops; Automaker Plans Production Cuts

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ord Motor Co. reported its first-quarter earnings fell 38.5% to $1.2 billion or 60 cents a share, compared with $1.95 billion or 94 cents for the same period last year.

The results beat analysts’ expectations, the Associated Press reported, but the company said it would make steeper cuts in second-quarter North American production, reducing production by 4.8% from a year earlier, from previous 1.2% plan.

The No. 2 U.S. automaker forecast that its second-quarter earnings, excluding some costs, would be break even to a loss of 15 cents per share. The company on April 11 had downgraded its 2005 earnings outlook by 29%.

According to Ward’s Communications data, Ford in March sold about 85,000 Class 1 trucks, 96,000 Class 2 units, 11,500 Class 3 trucks, 4,700 Class 4-6 trucks and 550 Class 7 trucks.

Ford eliminated 33,811 jobs, or 9.4% of its workforce, from 2002 through 2004, according to regulatory filings, Bloomberg reported.

The company is making buyout and early-retirement offers to pare another 1,000 salaried jobs, Bloomberg said.