Coronavirus impact: Ford suffers $2 billion net loss in first-quarter of 2020

KUALA LUMPUR: The COVID-19 outbreak has struck the automotive industry around the globe. It is affecting every aspect of the sector - from production to distribution. The first-quarter financial reports of the automakers are the evidence of disruption made by the lethal virus. 

In particular, automobile production in the US has significantly impacted, and as a result, the automakers of the country witnessed a bad start of 2020. Out of these, Ford has recently unveiled its first-quarter financial numbers, which mentions the loss of $2 billion (more than RM 8 billion).

The revenues of the firm also declined to $34 billion, which is almost 15% less than the previous year. The earning per share was -0.230 USD, and adjusted loss before interest and taxes was $632 million. The company solely blames the virus for the recorded net loss.

However, keeping the losses aside, the Blue Oval firm currently indulges in serving the community at these unprecedented times. It has already teamed up with the other companies and is producing medical equipment. In collaboration with GE, it has planned to manufacture 50,000 ventilators within 100 days, starting from April 20. Not only this, but its factories around the world are making personal protective equipment kits for the medical front liners. 

“Ford people are keeping each other safe, limiting the spread of the virus, safeguarding healthcare workers, and first responders, and taking care of customers. The imagination, initiative, and execution of our team is helping save lives today, and those qualities will allow Ford to emerge from this as a stronger company,” said CEO Jim Hackett.

Coming back to the financials, the firm is also prepared for the second-quarter loss, which is expected to be “more than $5 billion as year-over-year industry volumes decline significantly in every region.” However, the hopes are held high from the third quarter onwards. The resumption plan of factories outside China is prepared. 

It seems that the two highly anticipated upcoming models, Mustang Mach-E and revamped F-150 will help the American automaker in achieving their financial targets.

Also read: Ford Mustang Mach-E sold out or not?