Posted on 04/28/2020 8:02:47 PM PDT by MeneMeneTekelUpharsin
Car maker draws more than $15 billion from credit lines, sees even bigger loss in the second quarter
Ford Motor Co. on Tuesday reported a wider-than-expected first-quarter loss and braced for steeper losses in the next quarter as the coronavirus pandemic continued to snuff demand for big-ticket items and kept factories closed. “I never had a business plan that was called pandemic,” Ford Chief Executive Jim Hackett said on a call after the results. “We just never imagined the economy turning off” like it has to curb the spread of the virus.
Ford US:F lost $2 billion, or 50 cents a share, in the quarter, versus a profit of $1.1 billion, or 29 cents a share, in the first quarter of 2019. Adjusted for one-time items, the car maker lost 23 cents a share, contrasting with an adjusted profit of 44 cents a year ago. Sales fell 15% to $34.3 billion from $40.3 billion a year ago. Analysts had expected Ford to report GAAP and adjusted losses of 8 cents a share on sales of $34.7 billion. Shares fell 6% in the extended session after ending the regular trading day up 4.1%.
“The first quarter was bleak, as expected. There will be few businesses that emerge unscathed from this crisis, but the good news is that Ford has more firm restart dates in Europe and in the U.S. so there’s a little more certainty than there was a few days ago,” Edmunds analyst Jessica Caldwell said.
(Excerpt) Read more at marketwatch.com ...
Ford survived the Great Recession. They will get through the pandemic.
Mega-mega-mega-cash-for-clunkheads on the horizon.
Auto industry will be fine. When this is over, a lot fewer people are going to want to be crammed into the “virus incubators” of public transportation and want to be in the safety of their own vehicles.
The enviro-weenies are going to have a conniption...lol.
Bkmk
I hope so. This is kind of a shock...huge loss. Several well known names came in with earning under their estimates, UPS, Harley-Davidson, Alphabet (Google), Boyd Gaming and Starbucks. Some big ones report tomorrow. We’ll see.
It might take a while but they’ll recover. There will be a lot of pent up demand as soon as people feels it’s safe to continue their spending habits.
While I don’t need to replace my 2018 Escape, I am telling my wife we are going to get a 2020/1 Ford Edge trading in our Escape because it will help the US economy. Living in MI I want to help and I figure the best way is to spend money in the USA.
Many here dismiss these companies going out of business is that it is their fault for not preparing better, but no one prepares or expects to be closed from 5 weeks to perhaps 10 or more. Large businesses will survive, hobbled, but they will survive except for some large airlines (which still only brings a shrug of the shoulders), but the smaller companies that depend on cash flow for survival - many will never reopen.
It will be bad for small businesses. If I owned a restaurant, I would close it down and collect unemployment. Then wait until 2021 or 2022 to reopen.
Google is up after hours. Their earnings report was good.
A lot of businesses won't survive.
They take a loss on every sale but make it up with volume. < /s >
You don't think that maybe this is bigger than the Great Recession? (I think maybe it will prove to be a great deal bigger).
You might be right. But the Federal Government is not going to allow our economy crash like that. They will keep sending us $1,200 stimulus checks if they have to. With all that money in the economy, it'll help to prop things up although inflation may be a problem once we get through the pandemic.
The Edge is built in Canada
And my weak response is that it is still make in America, same as if it was made in Mexico.
Thinking, would my wife like an explorer????
This just sux.The thing that burns my ass is the stock is around 5 bucks for FORD whereas chinaGM is at 30 bucks.Lets have china bailout gm this time seeing they are keeping their plants going there and shutting them here and canada.gm is not our friend.
I believe you are right.
My husband tried to buy a truck last week and the salesman seemed uninterested. He went with a different company.
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