Ford, much like other automotive giants around the world, isn’t exactly having a good start to 2020. The COVID-19 pandemic has impacted the US automaker greatly, forcing them to shut down dealerships and its facilities all over the world. As a result, their first-quarter figures are not looking that good.
For starters, Ford recorded a net loss of $2 billion (over PhP 100 billion) for Q1 of 2020 according to their latest financial report. Aside from the $2 billion loss, the automaker also reported quarterly revenue of $34 billion, which is 15% lower than last year's performance. The automaker also stated EPS was at negative 23 cents and adjusted loss before interest and taxes were at $632 million. According to Ford, the negative effect of COVID-19 alone was at least $2 billion.
Rather than keeping Q1 sales figures up, Ford has focused on protecting people and helping society during the time of crisis. The automaker has begun engineering and building medical equipment together with other companies since last March. At the same time, their factories around the world have been making personal protective equipment in order to help 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.
Apart from being hit hard in only the first quarter of 2020, Ford expects the second quarter adjusted to reflect “a loss of more than $5 billion, as year-over-year industry volumes decline significantly in every region”. Still, the automaker hopes to have better figures in the third quarter onwards. The company already plans to restart production outside China soon. At the same time, new models such as the Mustang Mach-E and the upcoming redesigned F-150 are expected to help bring their figures back up.