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Ford Q1 2020 Earnings: $2 Billion Net Loss On $34 Billion Revenue

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Ford Q1 2020 earnings are headlined by a net loss of $2.0 billion on revenue of $34 billion. As expected, the earnings were significantly reduced by the effects of the coronavirus pandemic as the Dearborn-based automaker focused on protecting people and helping society respond to the crisis, while fortifying its balance sheet.

“Ford people are keeping each other safe, limiting the spread of the virus, safeguarding healthcare workers and first responders, and taking care of customers,” said CEO Jim Hackett. “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.”

On a per share basis, the $2 billon net loss equates to a loss of $50 cents per share. First-quarter adjusted free cash flow was negative $2.2 billion, adjusted EPS (Earnings Per Share) were negative 23 cents, and adjusted loss before interest and taxes was $632 million. Ford states that the estimated negative impact of the virus on adjusted EBIT was “at least $2 billion.”

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Automotive EBIT (Earnings Before Interest and Tax) was negative $177 million, driven by lower volumes. A $346 million positive EBIT from Ford’s North American region was offset by losses in other regions.

Ford Mobility posted a $300 million loss, which was expected as The Blue Oval continues to invest in the recently-established division responsible for autonomous vehicles.

Ford Q1 2020 earnings also included $30 million in first-quarter earnings before taxes for Ford Credit, a decrease of $771 million from Q1 2019. Strong portfolio performance of the captive finance arm was offset by about $600 million from increased credit-loss reserves, and higher depreciation on off-lease vehicles awaiting sale and anticipated operating lease defaults. All of these items reflect the estimated impact of the coronavirus in future periods

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This is a developing story and we will updated throughout the evening.

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Written by Alex Luft

Ford Authority founder with a passion for global automotive business strategy.

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