Pixabay
Pixabay
COVID-19 is to blame for a $2 billion first-quarter net loss Ford Motor Co., a spokesman for the automaker announced at the end of April.
If it weren't for the virus, Ford would have posted a pretax profit of $1.4 billion, Chief Financial Officer Tim Stone told the Associated Press.
Because of the public health emergency, most of Ford’s factories, the main source of revenue for the corporation, were shut down in the final week of the quarter. Stone declined to make any predictions for the year, telling the Associated Press that the situation was too uncertain. In the second quarter, Ford is expected to post a $5 billion pre-tax loss, the Associated Press reports.
Despite the virus, Ford is proceeding with its $11 billion restructuring plan.
“We've taken decisive actions to lower our costs and capital expenditures and have been opportunistic in strengthening our balance sheet and optimizing our financial flexibility,” Stone told the Associated Press.
North America is Ford’s most lucrative market and the company made $346 million before taxes in the first quarter. However, in world markets outside North America, Ford reported losses in automotive operations, resulting in a $177 million pretax loss, the Associated Press reported.
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