=Ford Motor (F) reported earnings on Tue 28 Apr 20 (a/h)

Ford Motor misses by $0.17, beats on revs 

Reports Q1 (Mar) loss of $0.23 per share, excluding non-recurring items, $0.17 worse than the S&P Capital IQ Consensus of ($0.06); revenues fell 14.9% year/year to $34.32 bln vs the $31.73 bln S&P Capital IQ Consensus.

Ford Credit delivered $30 million in first-quarter earnings before taxes, down $771 million from the same quarter a year ago. Strong portfolio performance was offset by about $600 million from increased credit-loss reserves, and higher depreciation on off-lease vehicles awaiting sale and anticipated operating lease defaults -- all reflecting estimated impact of the coronavirus in future periods.

In March, the company withdrew guidance for 2020 financial performance it had given in early February. That outlook excluded possible implications of the coronavirus, which at the time had not yet reached pandemic stage. According to CFO Stone, today's economic environment remains too ambiguous to provide full-year 2020 financial guidance. He said the company expects second-quarter adjusted EBIT to be a loss of more than $5 billion, as year-over-year industry volumes decline significantly in every region.

To maximize cash and preserve financial flexibility through and beyond the pandemic, Ford:

• Is lowering operating costs, reducing capital expenditures and deferring portions of executive salaries.
• Recently borrowed more than $15 billion from existing lines of credit, and this month issued $8 billion in unsecured bonds, and...
• Suspended its regular quarterly dividend and antidilutive share repurchase program.