He said sales were likely to improve in the third quarter.

He told stockholders at the company's annual meeting that results were not likely to improve in the second quarter.

Gross profit margins improved 5.5 percentage points in the first quarter from a year ago, to 13.7 percent.

Analysts now forecast growth to improve in the third quarter, up 7.6 percent.

Yesterday was the deadline for improving relative performance in the second quarter.

Ford's earnings will improve in the second quarter and thereafter, he predicted.

He also said that the company's gross margins had improved in the quarter but still trailed where they stood a year ago.

But revenue improved from $4.3 billion in the fourth quarter, a 3 percent increase.

The company said it expected natural gas prices to rise and earnings to improve in the fourth quarter.

He predicted the steel business would improve in the fourth quarter as the economy strengthens.