DETROIT -- Ford Motor Co. expects an operating loss of more than $5 billion in the second quarter as the financial toll of the coronavirus crisis continues to worsen.
The automaker said Tuesday that it lost $632 million before interest and taxes in the first quarter, although it made $346 million before interest and taxes in North America. That came despite shuttering U.S. assembly plants for the final two weeks of the quarter.
CFO Tim Stone said if the coronavirus crisis had not occurred Ford was tracking to post $1.4 billion or more in adjusted earnings before interest and taxes.
Ford in the first quarter lost money in every region outside of North America, including a $241 million loss in China, which was the first region impacted by the virus.
Ford Credit made $30 million in the quarter, down $771 million from the same period a year ago.
Ford’s mobility unit lost $300 million in the quarter as the automaker announced it would postpone the launch of its autonomous vehicle commercial services until 2022.
Stone said Ford had $35 billion in cash as of April 24 and that he believed it had sufficient cash to get it through the end of the year “with no additional vehicle wholesales or financing actions.”
"Our objective is not just to withstand the crisis, we’re ensuring the flexibility to continue to invest in our future,” Stone said on a conference call with journalists.
Ford CEO Jim Hackett and other executives noted Ford remained on track with its global redesign plans despite the coronavirus and that the team would continue putting money into “growth opportunities.”
The operating loss and $2 billion net loss Ford posted Tuesday were in line with the preliminary results it reported in a regulatory filing April 17.
The company said Tuesday that it still can't provide full-year guidance because "today's economic environment remains too ambiguous."
Ford's U.S. vehicle sales fell 12 percent in the first quarter, with most of the damage coming in late March as the pandemic swept across the country. The automaker on March 18 agreed to close all of its U.S. factories to protect workers and help stop the spread of the virus.
Stone declined Tuesday to offer a timeframe on reopening Ford’s U.S. assembly plants, although it plans a phased reopening of European facilities beginning May 4. The Wall Street Journal on Monday reported the Detroit 3 automakers are targeting May 18 to reopen plants in the U.S., although all three automakers said no decision has been made.
On Wall Street, Ford shares gained 4.1 percent to close at $5.38 before the earnings report was released. The shares retreated 4.8 percent in after-hours trading.
