Ford has failed to close the second quarter with a consistent and surprisingly useful budget. The Home of Dearborn, in particular, has benefited from the possibility to revalue its subsidiary for the guidance of autonomous Argo TO, following the completion of the alliance with Volkswagen.
Data. In essence, a contrivance accounting (perfectly lawful and made obligatory by the regulations) has enabled the Blue Oval to close in positive in the quarter, and to mitigate the heavy impact of the crisis generated by the coronavirus. To understand the magnitude of the pandemic, just look at the other components of the income statement. In the face of deliveries, down by 53% to 645 thousand units, revenues have suffered a decline of 50% and stopping at 19.4 billion dollars. The operating result, adjusted for non-recurring items, is then passed from a profit of 1.7 billion to a loss of 1.9 billion.
The impact of the Argo. By scaling down the profit and loss account, the situation improves, as said, for the effect of the revaluation of the Argo. The cooperation agreement with the Volkswagen group will bring the two builders to check both the startup and provide it with new resources to carry out the programmes of development of the technologies for the autonomous guide. The germans, who will have 40% of the company in Pittsburgh , just like the americans, have invested more than $ 2 billion on the basis of a rating of 7.5 A. The Ford, then, has re-evaluated its participation in the 3.5-billion and has registered a net profit of 1.1 billion, an increase compared to the $ 100 million a year ago. Not only. In the end, the Blue Oval has also beaten analysts ‘ expectations: the result per share, adjusted for the extraordinary items, was a loss of 35 cents, compared to down 1.17 dollars provided by the market, while the 16.6 billion in revenues from sun activity automotive are superior to 15,95 billion expectations.
Prospects. Beyond the effects of purely accounting, the impact of the crisis will be felt still for a long time. The company’s top executives expect to close out the third quarter with an operating profit of between 500 million and 1.5 billion dollars, the fourth quarter in a loss and the entire budget in the red. So far, however, the estimates of the management have not been very precise: to April, and were provided information on a loss of $ 5 billion in the second quarter, but the Ford is able to make the best of his own expectations, thanks to a wide set of measures to contain the effects of the crisis. Of the rest, the forecasts are based on the absorption of resources result heavy from the beginning of the pandemic: the Ford has burned cash to $ 5.3 billion between April and June, and 2.2 billion in the first three months of the year. Despite this, the group may rely on cash reserves to 39,8 billion us dollars, an amount considered sufficient to face the next few months and also a possible worsening of the health crisis, with the consequence of further plant closures or dealerships. For now, the emergency coronavirus has not produced any new delays in the launch of important new products: the Ford has confirmed the debut on the market after the summer of the new F-150 and Mustang Mach-And. Also, will debut the waiting Bronco, unveiled a few days ago and already capable, according to chief financial officer Tim Stone, to collect more than 150 thousand reservations and to overcome the “more optimistic expectations” of the company, of Dearborn.
Source: Quattroruote.en – Edited by Anthon K.