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Ford posts gain, warning

The sun glints off the grille of an unsold 2008 Taurus sedan at a Ford dealership in the southeast Denver suburb of Centennial, Colo., on Sunday. Associated Press (Associated Press / The Spokesman-Review)
From Wire Reports The Spokesman-Review
The sun glints off the grille of an unsold 2008 Taurus sedan at a Ford dealership in the southeast Denver suburb of Centennial, Colo., on Sunday. Associated Press (Associated Press / The Spokesman-Review)

Despite a surprise profit of $100 million for the first quarter, Ford Motor Co. said Thursday it still expects to lose money this year as the U.S. auto market deteriorates.

Ford made the profits, its first since the second quarter of last year, even when concerns about the U.S. economy kept many car buyers away from showrooms. Ford sales were off about 9 percent for the quarter, and the trend away from trucks and sport utility vehicles accelerated, hurting its bottom line. Yet Ford said it earned money anyway because of strong profits in Europe and South America, manufacturing cost reductions and successful hedging on commodity price increases.

Ford’s overall first-quarter profit, while not huge, is a big improvement over a $282 million net loss for the same period last year. Revenue came to $39.4 billion, down from $43 billion a year ago because of the sale of its Jaguar-Land Rover and Aston Martin units.

In other quarterly earnings reported Thursday:

•Occidental Petroleum said rising production and prices for oil and natural gas lifted earnings by 52 percent, with even more price increases expected to boost cash flows further. The Los Angeles-based company earned $1.85 billion compared with $1.21 billion in the year-ago quarter. Revenue jumped 50 percent to $6.02 billion.

•PepsiCo Inc. said a big rise in international revenue helped offset higher commodity costs and boost its first-quarter profit by 5 percent. Net income jumped to $1.15 billion, up from $1.10 billion the first quarter of 2007. Revenue climbed 13 percent to $8.33 billion.

•Newmont Mining Corp., one of the world’s largest gold producers, reported net income climbed more than fivefold as it lowered production costs while gold prices jumped. Newmont reported net income of $370 million, compared with $68 million a year ago. Revenue totaled $1.94 billion.

•Union Pacific Corp. said net income jumped 15 percent because price increases and fuel surcharges helped boost revenue even as shipping volume remained flat. The railroad said it earned $443 million, up from the $386 million the railroad earned a year ago. The Omaha, Neb.-based railroad said its revenue increased 11 percent, to $4.27 billion.

•Struggling cell phone maker Motorola Inc. disappointed investors when it posted a wider first-quarter loss and failed to meet revenue forecasts. The suburban Chicago company, in the midst of a massive reorganization, said it lost $194 million. Sales fell about 21 percent to $7.45 billion, down from $9.43 billion a year ago.

•Supermarket operator Safeway Inc. reported its profit rose 11 percent despite a slowing sales growth rate. The nation’s second-biggest grocery store operator earned $193.4 million, up from $174.4 million a year earlier. Revenue rose 7 percent to $10 billion.