Summary
Ford Motor Company's first quarter 2020 results, filed on April 28, 2020, were significantly impacted by the onset of the COVID-19 pandemic. The company reported a substantial net loss of $1.993 billion, a stark contrast to the net income of $1.183 billion in the same period of the prior year. This downturn was driven by a significant decrease in revenues, down 15% to $34.320 billion, largely due to the suspension of manufacturing operations in late March across most of the globe. In response to the crisis, Ford took decisive actions to bolster liquidity, including fully drawing down its corporate and supplemental revolving credit facilities for $15.4 billion and suspending its quarterly dividend. The company also issued $8 billion in unsecured debt in April 2020. While operations are beginning to restart in the second quarter, the full financial impact of the pandemic remains uncertain, with management expecting full-year 2020 results to be adversely affected. Despite these challenges, Ford maintained a strong cash position, ending the quarter with $26.160 billion in cash, cash equivalents, and restricted cash.
Financial Highlights
51 data points| Revenue | $34.32B |
| Cost of Revenue | $30.52B |
| Gross Profit | $3.80B |
| SG&A Expenses | $2.43B |
| Operating Expenses | $35.88B |
| Operating Income | -$1.56B |
| Net Income | -$1.99B |
| EPS (Basic) | $-0.50 |
| EPS (Diluted) | $-0.50 |
| Shares Outstanding (Basic) | 3.96B |
| Shares Outstanding (Diluted) | 3.96B |
Key Highlights
- 1Net loss of $1.993 billion in Q1 2020, compared to a net income of $1.183 billion in Q1 2019.
- 2Total revenues decreased by 15% to $34.320 billion in Q1 2020, primarily due to the suspension of manufacturing operations caused by COVID-19.
- 3Automotive segment EBIT was a loss of $177 million, a significant decline from a $2.009 billion profit in Q1 2019, heavily influenced by COVID-19 disruptions and higher costs.
- 4Ford Credit's EBT was $30 million in Q1 2020, a substantial decrease from $801 million in Q1 2019, largely due to an increase in credit loss reserves ($600 million) driven by COVID-19 uncertainty.
- 5Company strengthened its liquidity position by drawing down $15.4 billion on credit facilities and subsequently issuing $8 billion in unsecured notes.
- 6Total cash, cash equivalents, and restricted cash increased to $26.160 billion at March 31, 2020, up from $17.741 billion at the end of 2019.
- 7The company established an $855 million valuation allowance against certain deferred tax assets due to the impact of COVID-19.