Ford losses reach $1.2 billion

Ford Motor Co. swung to a $1.2 billion loss in the first quarter as it began a costly restructuring effort amid weak U.S. sales, leaving Ford executives disappointed but determined to go ahead with their plan to cut 30,000 jobs and remake the No. 2 automaker.

“This transformation isn’t going to be quick and it isn’t going to be painless,” Ford Chairman and Chief Executive Bill Ford said in a statement. “It involves risks and the financial rewards won’t be immediate. But in the end, I believe we’ll get there.”

Investors weren’t so sure. Ford’s stock fell 63 cents, or 7.9 percent, to close at $7.32 on the New York Stock Exchange, approaching its 52-week low of $7.13.

•McDonald’s Corp. posted its largest quarterly earnings decline since 2002 Friday, a 14 percent drop that reflected a big tax gain a year ago and came as customers continued spending significantly more money at its restaurants.

Lower profits failed to dent three years of momentum for the fast-food leader, with same-store sales rising 5.2 percent worldwide and its flagship U.S. operation still resurgent thanks to successful new products, later hours, a strengthened breakfast business and cashless pay options.

Net income was $625.3 million, or 49 cents per share. That compared with $727.9 million, or 56 cents per share, a year earlier when results were boosted by several one-time items, most notably a favorable audit settlement of the company’s 2000-2002 U.S. tax returns that added 13 cents per share.

•3M Co., the maker of Scotch tape, skin cream and furnace filters, said Friday its first-quarter earnings jumped 17 percent on strong growth across its businesses. It also gave a bullish forecast and raised earnings guidance for the year.

During trading, investors bid the Dow component up to a new high for the year of $85.50, before closing at $85.06, up $2.46, or 3 percent, on the New York Stock Exchange.

3M said it earned $899 million, or $1.17 per share, up from $771 million, or 97 cents per share, during the same period last year.

•Royal Caribbean Cruises Ltd., the world’s second-largest cruise operator, said Friday its first-quarter earnings fell 37 percent as revenue edged down, but the results still beat the company’s expectations and Wall Street’s estimate.

Royal Caribbean shares rose $1.22, or 2.9 percent, to close at $42.77 on the New York Stock Exchange.

First-quarter earnings fell to $119.5 million, or 55 cents per share, from $189.6 million, or 86 cents per share, a year earlier. Revenue fell 2 percent to $1.15 billion from $1.17 billion.