Ford Reports Second Quarter 2020 Results
Ford reports Better-Than-Anticipated Q2 Operating Results as company manages Coronavirus.
Staff or Guest writer for The Dog of Wall Street.
2020-07-30 17:04

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.”

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.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-07-30 17:04

About the Author
Staff or Guest writer for The Dog of Wall Street.

Analyst Ratings
Target Price $15.36
# of Analysts 20
Last updated 2021-11-23

Better Investment: Ford or General Motors
Both companies are firing on all cylinders right now.
By Mike Sakuraba | 2 months ago

Tesla Disappoints, buy the dip?
In its first quarterly earnings call since becoming a blue-chip stock on the benchmark S&P 500 index, Tesla (NASDAQ:TSLA) disappointed and missed Wall Street estimates nearly across the board.
By Mike Sakuraba | 10 months ago

2 Unsuspecting Electric Vehicle Investments
Both of these historic automotive countries have some growth in them, as they try to play catch up in the electric vehicle sector.
By Mike Sakuraba | 10 months ago

Does Ford Have Any Chance in the Electric Vehicle Game?
While any excitement over their future lineup of new vehicles has clearly dissipated, it is hard to see Ford as a viable challenger in the ultra-competitive electric vehicle market moving forward.
By Mike Sakuraba | 1 year ago

What to Expect from Ford's Q2 Earnings Call
Ford’s stock price may look enticing to bargain bin investors but it remains unclear how the markets will react.
By Mike Sakuraba | 1 year ago

What the Omicron Variant Means for Stocks
Investors woke up to a bloody day on the markets on Black Friday, and it wasn’t because Wall Street was having a sale on stocks.
By Mike Sakuraba | 3 days ago