By Nick Carey and Ben Klayman
Jul 30 (.) – Ford Motor Co He said Thursday that he expects to post an annual loss, but said he should have enough cash on hand for the rest of 2020 even if demand falls further or the COVID-19 pandemic forces more vehicle assembly plants to close.
Ford’s announcements became known when the company posted a quarterly profit on an investment by Volkswagen AG on its Argo autonomous driving unit, which more than made up for the loss caused by a coronavirus-induced production shutdown.
Results and better-than-expected earnings prospects pushed Ford shares up 2.5% in post-close Wall Street trading.
“Solid execution allowed us to deliver much better financial results than we had hoped for just three months ago,” Chief Executive Jim Hackett said in a conference call with analysts.
German automaker VW closed its $ 2.6 billion investment in Argo last month, which is now valued at $ 7.5 billion. Each automaker has a share of approximately 40% in the unit.
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. In April, Ford warned that its second-quarter loss would more than double to more than $ 5 billion due to the coronavirus outbreak.
Ford reported second-quarter earnings of $ 1.1 billion, or 28 cents a share, compared to a profit of $ 100 million, or 4 cents a share, a year earlier.
Excluding items, the automaker posted a second-quarter operating loss of $ 1.9 billion, or 35 cents a share. Analysts had expected a loss of $ 1.17 per paper.
(Reported by Ben Klayman. Edited in Spanish by Rodrigo Charme)