Ford expects US$600m Q1 loss due to coronavirus

[DETROIT] Ford Motor said on Monday it expects to post a pre-tax loss of about US$600 million for the first quarter as the coronavirus pandemic pummeled its operations, resulting in a 21 per cent drop in vehicle sales to dealers versus the same quarter in 2019.

Only Ford's joint ventures in China, where the coronavirus pandemic has been receding, are currently producing vehicles. The automaker said it is working on a scenario for a phased restart of its manufacturing plants beginning in the second quarter.

"However, we believe we have sufficient cash today to get us through at least the end of the third quarter with no incremental vehicle production and wholesales or financing actions," Chief Financial Officer Tim Stone said in a statement.

As of April 9, Ford said it had about US$30 billion in cash on its balance sheet, including US$15.4 billion it borrowed last month against two existing credit lines.

Ford said any decisions on restarting its plants will be made "in cooperation with local unions, suppliers, dealers and other stakeholders."

It said it expects its first-quarter adjusted loss before interest and taxes to be about US$600 million, compared with a profit of US$2.4 billion a year earlier.

The company said it expects to report revenue of about US$34 billion for the quarter. 

REUTERS