AILING AUTO GIANT FORD MOTOR CO POSTED A FIRST QUARTER LOSS OF 1.2 BILLION DOLLARS ON FRIDAY, DUE TO SOME 1.7 BILLION DOLLARS IN RESTRUCTURING COSTS, THE COMPANY SAID, ACCORDING TO DPA. THE LOSS WAS FORD'S BIGGEST SINCE LOSING MORE THAN 5 BILLION DOLLARS IN THE FOURTH QUARTER OF 2001 - THE RESULT OF A PREVIOUS RESTRUCTURING EFFORT. FORD'S EARNINGS WERE ANNOUNCED ONE DAY AFTER RIVAL GENERAL MOTORS CORP SLASHED ITS LOSSES TO 323 MILLION DOLLARS FROM 1.3 BILLION DOLLARS A YEAR AGO. LAST YEAR, FORD REPORTED INCOME OF 1.2 BILLION DOLLARS IN THE FIRST QUARTER. "THIS TRANSFORMATION ISN'T GOING TO BE QUICK, AND IT ISN'T GOING TO BE PAINLESS," SAID FORD CEO WILLIAM CLAY FORD ON A CONFERENCE CALL WITH INVESTORS. HE PLEDGED TO RETURN THE COMPANY TO PROFITABILITY BY 2008. IN A DOWNSIZING PLAN ANNOUNCED EARLIER THIS YEAR, FORD SAID IT WOULD CLOSE 14 FACTORIES THROUGH 2012, ELIMINATING AS MANY AS 30,000 JOBS. FORD SAID IT LOST 457 MILLION DOLLARS ON ITS NORTH AMERICAN OPERATIONS, AS SALES OF SPORTS UTILITY VEHICLES PLUMMETED AND REVENUE FELL TO 19.8 BILLION DOLLARS FROM 21.1 BILLION DOLLARS IN THE SAME PERIOD A YEAR AGO. WORLDWIDE REVENUE WAS 41.1 BILLION DOLLARS, DOWN 9 PER CENT FROM A YEAR AGO. THE COMPANY SAID THAT IT PLANS TO CUT SECOND-QUARTER AUTO PRODUCTION IN NORTH AMERICA BY 1.7 PER CENT FROM YEAR-EARLIER LEVELS, TO 890,000 CARS AND TRUCKS. PRODUCTION DROPPED 3.5 PERCENT IN THE FIRST QUARTER.
