(Reuters) – Ford Motor Co said Thursday that he expected a full-year loss, but added that he deserves to have enough money by 2020, even if global demand continues to decline or the COVID-19 pandemic leads to more vehicle plant meeting closures.
Us automaker No. 2 also said that on July 27, it had repaid $7.7 billion of $15.4 billion in its revolving credit services and extended $4.8 billion of its revolving credit lines over 3 years.
Ford’s comments came here when the company posted a quarterly profit thanks to an investment through Volkswagen AG in its Argo AI autonomous unit, rather than offsetting a loss caused by a coronavirus-induced production shutdown.
The effects and better-than-expected gains drove Ford’s stock growth by 2.5% in the aftermarket.
“Execution has allowed us to generate much greater monetary effects than we expected just three months ago,” Chief Executive Jim Hackett said in a conference call with analysts.
German manufacturer VW closed its $2.6 billion investment in Argo last month, which is now valued at $7.5 billion. Each manufacturer owns a stake of about 40% in Argo. [L1N2DE1QH]
Ford said it expects an pre-tax profit of between $500 million and $1.5 billion for the third quarter and a loss for the fourth quarter, which 3 primary products are released late due to the previous year’s close.
In April, Ford warned that its loss in the second quarter would double to more than $5 billion due to the coronavirus outbreak.
CFO Tim Stone said cost-cutting, a productive recovery from a two-month lock, strong functionality of the car manufacturer’s captive monetary arm, and a robust pricing environment for his cars helped mitigate the expected loss.
“While Ford has been through the worst of COVID’s disorders, we now focus on the company’s redesign efforts. While the product opportunity is promising with the F-150 and Bronco, there are still paints to be made about the restructuring,” Credit Suisse Analyst Dan Levy said in a study note, referring to the company’s popular pickup truck and the new SUV it will offer later. This year.
The Dearborn, Michigan-based company said operating charges for its global restructuring would total $700 million to $1.2 billion for the year, down from $3.2 billion last year. Stone told reporters Ford’s redesign was “absolutely not stalled.”
Ford also said he had more than 150,000 reserves for the new Bronco, which will be presented in the fourth quarter. This number exceeded internal expectations and Ford executives said they were working to increase additional production, and in all likelihood added some other shift at a plant.
Ford ended the quarter with approximately $40 billion in money and said it could maintain or exceed its target monetary balance of $20 billion by the rest of 2020, even if global auto demand declines or COVID-19 forces some other giant wave of plant closures.
Ford reported a third-quarter net revenue stream of $1.1 billion, or 28 cents consistent with the stock, compared to a profit of $100 million, or four cents consistent with the stock, a year earlier.
Excluding items, Ford recorded an inconsistent loss of $1.9 billion in the quarter, or 35 cents consistent with the stake. Analysts expected a $1.17 loss consistent with the stock.
Reporting through Ben Klayman; Editing through Tom Brown
All quotes were delayed for at least 15 minutes. See here for a complete list of operations and delays.
© 2020 Reuters. All rights are reserved.