Ford Motor Co. (F) said it has enough money to make it through this year after the auto maker posted a smaller-than-expected first-quarter loss and slowed its cash burn.

Ford posted a net loss of $1.4 billion, or 60 cents a share, compared with a profit of $70 million or 3 cents a share for the same period a year earlier. Revenue declined 37% to $24.8 billion.

Excluding one-time items, the loss was $1.8 billion, or 75 cents a share beating the average analyst estimate of a per-share loss of $1.23, according to Thomson Reuters. Shares jumped as high as $5.45 in earlier trading.

Ford Chief Financial Officer Lewis Booth said the first quarter's cash burn of $3.7 billion will be the highest for the company this year. The company ended the quarter with $21.3 billion and is now projecting to slice another 44 billion this year.

"On balance, a solid set of results given the current climate," JP Morgan analyst Himanshu Patel said in a research note Friday. "We expect a positive reaction, and continue to believe Ford's recent rally is not unjustified but see only modest incremental upside potential in the equity at these levels."

Ford, like competitors General Motors Corp. (GM) and Chrysler LLC, still face a historic downturn in automotive sales in the U.S. and Europe amid a global recession. The company said seasonally-adjusted industry sales in North America were expected to be at the lower end of its 10.5 million to 12.5 million planning range. Industry sales in the first quarter ran at an annualized rate of 9.8 million.

 
  Global Volume

The global auto industry volume will fall 15% this year, though sales in Europe are running ahead of its own planning assumptions. Booth said the pace of the sales decline in Europe was running at about half of that seen in the U.S., buoyed by government programs such as subsidies for the scrapping of old cars.

Sales could also be further depressed in the U.S. if GM or Chrysler file for bankruptcy protection.

Chrysler has until April 30 to meet a federal mandated deadline to cut costs and merge with Italian-based Fiat SpA. GM has until June 1 to cut its costs.

The auto maker is also vulnerable to part supplier problems. Parts makers, already financially stressed, will be hit again after General Motors Corp. (GM) said it will cut output by 25% over the next three months to control inventory levels. Many of GM's suppliers also provide parts to Ford.

"To date, the health of the supply base is the most critical issue," Ford Chief Executive Officer Alan Mulally said.

Mulally declined to address whether the federal government should change terms of an aid program designed to help accelerate payments and insure receivables. Suppliers must pay to participate in the programs administered by GM and Chrysler. Ford isn't participating.

 
  Volvo Held For Sale

Ford said its North American unit posted a pre-tax loss of $637 million compared with a loss of $45 million a year earlier. South America's profit shrunk to $63 million from $257 million for the same period a year earlier.

The auto maker's European unit swung to a loss of $550 million compared with a profit of $739 million.

The company's Volvo unit posted a wider pre-tax loss of $255 million compared with a loss of $151 million a year earlier. First quarter revenue was cut nearly in half to $2.6 billion from $4.2 billion.

The decline in the unit was based on lower industry volume, lower market share, dealer stock reductions and pricing.

Ford also placed its Volvo unit in "held for sale" status which resulted in a $700 million charge reflecting the slump in estimated value for the brand. Held for sale status also means the unit is expected to be sold within the next 12 months.

-By Jeff Bennett, Dow Jones Newswires; jeff.bennett@dowjones.com; 248-204-5542

(Doug Cameron contributed to this story)