Ford (F) earnings Q1 2020

Ford (F) earnings Q1 2020

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Signage is displayed outside the house the idled Ford Motor Co. Michigan Assembly plant in Wayne, Michigan, U.S., on Monday, March 23, 2020.

Anthony Lanzilote | Bloomberg | Getty Pictures

Ford Motor is set to report its first-quarter earnings after the bell on Tuesday as the business grapples with the fallout from the coronavirus pandemic that is shuttered factories and devastated gross sales.

The automaker has currently braced buyers for a roughly $2 billion net loss and 15.7% drop in income. In this article are the highlights of the preliminary first-quarter results Ford disclosed earlier this month:

  • A roughly $2 billion net reduction
  • An modified pretax reduction of $600 million
  • Profits of about $34 billion, down 15.7% from $40.3 billion a calendar year in the past

Wall Street is looking at to see how significantly dollars Ford burned in the quarter as very well as any guidance for the 2nd-quarter and over and above concerning the power of its balance sheet and restarting U.S. manufacturing, which ceased previous month. Buyers are also searching for updates on important product or service launches, this kind of as the Ford Bronco SUV and redesigned F-150 pickup. Both of those had been envisioned this calendar year.

As of April 9, Ford said it had about $30 billion in income on its stability sheet, like $15.4 billion of proceeds from borrowings last month against two existing credit traces.

To further more strengthen its dollars place, Ford offered about $8 billion in bonds before this thirty day period, increasing its money place by about 27%, it mentioned April 17.

Ford Main Economical Officer Tim Stone beforehand reported the business thought it had enough money to get it by means of “at least the close of the 3rd quarter with no incremental automobile production and wholesales or financing actions.”

Automakers throughout the world have been compelled to conduct rolling plant shutdowns due to Covid-19. What started out as a challenge in China to start out the yr, rapidly grew to a offer base issue and then a international pandemic that shut down U.S. services, which keep on being closed.

Urged by the United Car Staff union, Ford, Standard Motors and Fiat Chrysler declared strategies to temporarily close their vegetation because of to the coronavirus on March 18. Pending conversations with the union, the facilities could begin to reopen as quickly as next month.

Ford on Tuesday stated it ideas to begin reopening its European crops upcoming 7 days with new worldwide protection protocols to restrict the distribute of Covid-19, giving a probable template for reopening its U.S. functions. 

Ford’s initial-quarter car income fell 12.5% from a year back, the business claimed previously this thirty day period.

IHS Markit expects worldwide car or truck gross sales to decline 22% this year to 70.3 million units, led by a 26.6% drop in the U.S. to 12.5 million models, compared with a calendar year ago.

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