Ford Motor Q2- Sales Drop -53%. Debt Grows $10B

Ken Zino of AutoInformed.com on Ford Motor Q2 2020 Loss Lowlights

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Ford Motor Company posted Q2 results that saw sales drop to 645,000 or -53%  because of COVID-related lower industry volume and suspended production through May 17. Adjusted Earnings Before Interest and Taxes was down -$1.9B, because of lower volume, new-model material cost and warranty, offset partially by higher net pricing, and lower structural cost arising from suspended production, reduced marketing activity and other one-time cost actions.

Analysts, a mysterious species to AutoInformed, were surprised and delighted? AutoInformed noted an ongoing warranty cost disaster, which is a management failure not a Covid issue. It remains troubling as Ford is introducing increasingly complex but profitable SUV, EVs and Trucks.

Here’s the Snapshot:

  • Q2 wholesale units down 53%, reflecting chiefly COVID-related lower industry volume and suspended production for most of the quarter.
  • Revenue at $19.4B dropped -50%, driven by lower volume and weaker currencies, offset partially by higher net pricing.
  • EBIT fell only -10% at -1.9B, despite a significant wholesale reduction; higher net pricing, cost performance and favorable vehicle mix more than offset inflationary cost increases.
  • The automotive results dropped in all regions – except for China and South America which broke even.
  • Ford made a gain of $3.5B in its Argo Autonomous vehicle subsidiary.
Ken Zino of AutoInformed.com on Ford Motor Q2 2020 Covid Losses

Better than expected?

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About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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3 Responses to Ford Motor Q2- Sales Drop -53%. Debt Grows $10B

  1. Pingback: Ford Motor Changes CEO from Jim Hackett to Jim Farley | AutoInformed

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