Ford Estimates $5 Billion Loss in Q2 as Demand Drops
Ford Motor stated Tuesday its second-quarter loss would greater than double to over $5 billion from $2 billion within the first quarter because of the impression of the coronavirus pandemic, but added it had sufficient money despite the disaster to final the rest of 2020.
However, he called the current economic environment too ambiguous for the #2 U.S. auto manufacturer to give a full-year 2020 earnings forecast.
The Dearborn, Michigan-based firm has slashed prices during the COVID-19 pandemic to weather the shutdown, including cutting salaries of executives and white-collar employees.
Ford moved to cut spending on ventures, saying Tuesday it was pushing back its commercial autonomous vehicle companies by a year to 2022 and that it had decided not to develop a previously announced luxurious electrical Lincoln sport utility vehicle in partnership with electric automobile manufacturer Rivian.
Ford shares had been down over 4.6% in after-hours trading on Tuesday after closing the regular session at $5.38.
Ford’s market worth of $20.6 billion is now less than the $35 billion in cash it had on hand as of last Friday, an indication that investors anticipate the company to burn through significant quantities of cash before restoration takes hold.
Ford had preannounced the pandemic-fueled Q1 loss earlier this month. That warning came the same day the company raised $8 billion from company debt investors.