Ford made the most of its business in the midst of coronavirus, progress toward major new-vehicle launches in the near term, and strategic investments in the company’s ambitious future during second-quarter 2020.
Here the highlights:
- Posts net income of $1.1 billion, including $3.5 billion gain on investment in Argo AI
- Reports negative $1.9 billion – more than $3 billion better than expected – in adjusted EBIT, which excludes Argo AI gain, following safe, effective restart of global manufacturing
- Makes further progress in delighting customers, fixing operating fundamentals – integrating new technologies, lowering costs and capex, assuring readiness for major product launches
- Finalizes strategic alliance with Volkswagen for commercial vehicles, EVs, pickups
- Maintains strong balance sheet, with more than $39 billion in cash at end of Q2; this week repaid $7.7 billion against revolving credit lines
- Expects strongest 2020 adjusted EBIT in Q3; launch plans for new F-150, Mustang Mach
President and CEO Jim Hackett said the following:
“I could not be prouder of the Ford team’s optimism and effectiveness as we manage through this pandemic. We delivered a strong Q2 while keeping each other safe, caring for customers and neighbors, and assuring tomorrow.”
Outlook
Stone said Ford’s expectations for the second half of 2020 assume no meaningful change in the current economic conditions, continued steady improvement in stability of the global automotive supply base, and no further significant coronavirus-related disruptions to production or distribution. In that environment, he said, the company anticipates third-quarter adjusted EBIT of $0.5 billion to $1.5 billion, reflecting economic effects of the pandemic; year-over-year weaker global demand for new vehicles, parts and services; and a lower profit from Ford Credit than a year ago.
Ford's stock is up in after-market hours trading.
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