Summary
Ford Motor Company's (F) Q2 2020 results, filed on July 30, 2020, reflect the significant impact of the COVID-19 pandemic. Revenues were substantially down compared to the prior year due to production suspensions and reduced economic activity. While the company reported a net income of $1.117 billion due to a large gain from the Argo AI and Volkswagen transaction, adjusted EBIT was a loss of $1.946 billion. Ford maintained strong liquidity, ending the quarter with $39.3 billion in cash, bolstered by recent debt issuances, and repaid a significant portion of its revolving credit facility shortly after the quarter end. The company is navigating ongoing challenges, including the lingering effects of the pandemic on demand, supply chains, and consumer behavior. Despite operational improvements and cost-saving measures, the outlook for the full year 2020 remains a net loss in adjusted EBIT, with significant uncertainties persisting.
Financial Highlights
51 data points| Revenue | $19.37B |
| Cost of Revenue | $17.93B |
| Gross Profit | $1.44B |
| SG&A Expenses | $1.97B |
| Operating Expenses | $22.13B |
| Operating Income | -$2.76B |
| Net Income | $1.12B |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 3.99B |
Key Highlights
- 1Total revenues declined significantly by 50% year-over-year to $19.371 billion in Q2 2020, reflecting widespread production suspensions due to COVID-19.
- 2The company reported a net income of $1.117 billion, largely driven by a $3.5 billion gain from the transaction involving its investment in Argo AI and Volkswagen.
- 3Adjusted EBIT was a significant loss of $1.946 billion, a deterioration of $3.6 billion compared to Q2 2019, primarily due to lower Automotive EBIT.
- 4Ford maintained a strong liquidity position, ending the quarter with $39.3 billion in cash and cash equivalents.
- 5Automotive segment EBIT was a loss of $2.089 billion, negatively impacted by lower volumes and production disruptions, though partially offset by cost improvements and net pricing.
- 6Ford Credit segment EBT decreased by $288 million to $543 million, impacted by higher supplemental depreciation on operating leases and increased credit loss reserves.
- 7The company experienced a substantial increase in debt, with Company debt (excluding Ford Credit) rising to $40 billion at June 30, 2020, up from $15.3 billion at the end of 2019, due to drawing on credit facilities and issuing new debt to preserve liquidity.