Ford posts profit, expects full-year 2020 loss
Ford said it expects a full-year loss but added it should have ample cash on hand throughout the rest of 2020, even if global demand falls further or the COVID-19 pandemic forces more shutdowns of vehicle assembly plants.
The U.S. automaker also said that on July 27 it repaid $7.7 billion of an outstanding $15.4 billion on its revolving credit facilities, and extended $4.8 billion of its three-year revolving credit lines.
Ford’s comments came as the company posted a quarterly profit thanks to an investment by Volkswagen in its self-driving Argo AI unit, more than offsetting a loss caused by a coronavirus-induced production shutdown.
Ford said it expects a pre-tax profit of between $500 million and $1.5 billion for the third quarter and a loss for the fourth quarter, which features three significant product launches delayed by the shutdown earlier this year.
In April, Ford warned that its second quarter loss would more than double to more than $5 billion due to the coronavirus outbreak.