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Ford Motor Company posted Q2 results that saw sales drop to 645,000 or -53% because of COVID-related lower industry volume and suspended production through May 17. Adjusted Earnings Before Interest and Taxes was down -$1.9B, because of lower volume, new-model material cost and warranty, offset partially by higher net pricing, and lower structural cost arising from suspended production, reduced marketing activity and other one-time cost actions.
Analysts, a mysterious species to AutoInformed, were surprised and delighted? AutoInformed noted an ongoing warranty cost disaster, which is a management failure not a Covid issue. It remains troubling as Ford is introducing increasingly complex but profitable SUV, EVs and Trucks.
Here’s the Snapshot:
- Q2 wholesale units down 53%, reflecting chiefly COVID-related lower industry volume and suspended production for most of the quarter.
- Revenue at $19.4B dropped -50%, driven by lower volume and weaker currencies, offset partially by higher net pricing.
- EBIT fell only -10% at -1.9B, despite a significant wholesale reduction; higher net pricing, cost performance and favorable vehicle mix more than offset inflationary cost increases.
- The automotive results dropped in all regions – except for China and South America which broke even.
- Ford made a gain of $3.5B in its Argo Autonomous vehicle subsidiary.
Better than expected?
See AutoInformed.com on:
- Milestones: Volkswagen Completes Promised Argo AI Funding
- Volkswagen Joins Ford by Investing in Argo AI
- Ford Places $1B Bet in Argo AI on Autonomous Vehicles
- Ford Bronco Sequel Appears with First-Ever Four-Door
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Based on responses collected July 9 through July 14, the Household Pulse Survey estimates that during the COVID-19 pandemic:
51.1% of American adults live in households which have experienced a loss in employment income
35.2% of American adults expect to experience a loss in employment income
12.1% of Americans lived in households where there was either sometimes or often not enough to eat in the previous 7 days
40.1% of adults had delayed getting medical care in the previous 4 weeks
26.2% of respondents reported having little interest or pleasure in doing things more than half the days/nearly every day last week
24.8% of respondents reported feeling down more than half the days/nearly every day last week
33.9% of respondents reported feeling anxious or nervous more than half the days/nearly every day last week
On average, households spent $211.34 a week to buy food at supermarkets, grocery stores, online, and other places to be prepared and eaten at home
26.5% of adults either missed last month’s rent or mortgage payment, or had slight or no confidence that their household could make the next payment on time