Ford posts $1.4B loss, but it burns less cash

DETROIT -- The automaker says it still plans to break even in 2011 without government assistance. But that could change if there's an uncontrolled bankruptcy among one of Ford's major competitors or large suppliers, CEO Alan Mulally said on a conference call Friday.

"Clearly, the health of the supply base is the most critical issue as the government helps GM and Chrysler restructure," Mulally said.

Ford posted a net loss of $1.43 billion, smaller than many analysts expected, but that compares with the $70 million net income it posted a year earlier. Revenue was down 37% to $24.8 billion, and sales were down 43% compared with last year.

Still, Ford says its cash burn is slowing. For the first quarter, Ford spent $3.7 billion more than it took in. In the third and fourth quarters, the company spent $7.7 billion and $5.5 billion more than it made, respectively. Chief Financial Officer Lewis Booth called the recent results encouraging and said the automaker expects the first quarter to have the worst cash burn of the year.

The automaker improved the cash on its books by $7.9 billion, largely by taking on a $10.1 billion line of credit. The automaker had $21.3 billion in cash at the end of the first quarter.

"Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world," Mulally said.

Ford has not sought taxpayer help, setting it apart from GM and Chrysler, which are operating on $17.4 billion of federal loans and looking for more to stave off bankruptcy