Ford warned that it expects a second-quarter operating loss of $5 billion in the wake of the coronavirus crisis, sending shares lower (JUSTIN SULLIVAN)<\/i><\/p>\n
New York (AFP) – Ford warned Tuesday that it expects a second-quarter operating loss of $5 billion in the wake of the coronavirus crisis, sending its share price lower.<\/p>\n
The bad news comes on the heels of Ford’s announcement that it suffered a $632 million loss in the first quarter following a negative hit of more than $2 billion from COVID-19. <\/p>\n
Revenues fell 15 percent to $34.3 billion as car sales declined in all of Ford’s markets, the automaker said Tuesday.<\/p>\n
Ford said it expects a “phased restart” of European plants to begin next week, but the company still has not released a timetable for resuming operations in the United States after factories were shuttered in March.<\/p>\n
Like many companies in struggling sectors, the COVID-19 crisis has forced companies to refashion their budgets so that they have sufficient liquidity.<\/p>\n
Ford has suspended its dividend, lowered spending and raised some $23 billion through existing credit lines as well as bond issues.<\/p>\n
“We’ve taken decisive actions to lower our costs and capital expenditures and been opportunistic in strengthening our balance sheet and optimizing our financial flexibility,” Chief Financial Officer Tim Stone said.<\/p>\n
“We believe the company’s cash is sufficient to take us through the end of the year, even with no additional vehicle wholesales or financing actions.”<\/p>\n
Shares of Ford fell 5.4 percent to $5.09 in after-hours trading.<\/p>\n
Disclaimer:<\/b> Validity of the above story is for 7 Days from original date of publishing. Source: AFP.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
Ford warned that it expects a second-quarter operating loss of $5 billion in the wake of the coronavirus crisis, sending shares lower (JUSTIN SULLIVAN) New York (AFP) – Ford warned Tuesday that it expects a second-quarter operating loss of $5 billion in the wake of the coronavirus crisis, sending its share price lower. The bad…<\/p>\n