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Ford predicts it will lose 600 million before taxes in the first quarter

Washington

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Ford announced Monday that it plans to lose $ 600 million before taxes in the first quarter of the year as a result of the stoppage caused by the worldwide COVID-19 pandemic and which expects to restart production in phases in the second quarter.

The automobile group today provided a preview of the financial results for the first quarter in which it indicated that as of April 9 it had 30,000 million dollars of liquidity, which would allow it to continue operating until “at least late third quartereven without the additional restart of production or the taking of other financial actions. “

Currently, only the joint ventures Ford has in China are producing and selling vehicles. In March, the company stopped production at its plants in North America and Europe.

On April 3, Ford reported that the suspension of production in Europe will continue at least until May 4, although the Spanish plant of Almussafes could resume its activity on the 27 of this month.

The COVID-19 extension has also forced Ford to delay restarting operations at the Hermosillo Mexican plant, initially scheduled for April 6. Ford It has also suspended its production in Brazil and Argentina.

“The company is considering the scenario for a phased second quarter restart of its manufacturing plants, supplier network and other dependent functions with improved safety standards to protect workers,” the company said in a statement.

The firm added that any decision on the resumption of activity at its facilities “will be made in cooperation with unions, suppliers, dealers and other interested parties.”

“We continue to evaluate in a timely manner all financing options to further strengthen our balance sheet and increase liquidity to optimize our financial flexibility. We are also identifying other operational actions to improve our liquidity position,” said Ford’s chief financial officer, Tim Stone.

For now, Ford has suspended paying $ 600 million in dividends and is reducing its operating costs and capital expenses, while delaying portions of executive salaries.

In the first quarter of the year, Ford’s sales fell 21% due to the COVID-19 crisis and it expects revenues of about $ 34 billion in the period. Ford will announce its first quarter financial results on April 28. Shares of the car company have fallen more than 1.8% in the first hours of trading, after knowing their new predictions.

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