Ford's Q2 2020 Revenue Fell By Half
In the second quarter, automaker Ford Motor posted a smaller-than-expected adjusted loss, while revenue halved, but matched analysts' forecasts.
In April-June, the company's net income was $1.1 billion, or $0.28 per share, compared with $148 million, or $0.04 per share, received in the same period last year. The net profit figure includes a one-time revenue of $3.5 billion related to investments in Argo AI.
Excluding one-time items on the balance sheet, Ford posted a loss of $0.35 per share compared to adjusted earnings of $0.28 per share a year earlier.
Ford's operating loss was $1.9 billion, more than $3 billion less than the company had forecast in April. This is mainly due to the relentless demand for Ford-produced SUVs and trucks, despite the closure of factories and dealerships in the fall.
Revenue in the last quarter decreased by 50%, to $19.371 billion from $38.853 billion a year earlier.
Analysts polled by Factset, on average, estimated the company's adjusted loss at $1.17 per share on revenue of $19.4 billion.
In the third quarter, Ford expects operating profit growth of $0.5-1.5 billion. An operating loss is a forecast for the entire year 2020.
Ford shares are up 2.4% in preliminary trading on Friday. Since the beginning of the year, the automaker's capitalization has fallen by 27.5%, to $27.5 billion.
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.
“I could not be prouder of the Ford team’s optimism and effectiveness as we manage through this pandemic,” said President and CEO Jim Hackett. “We delivered a strong Q2 while keeping
each other safe, caring for customers and neighbors, and assuring tomorrow.”