Ford Warns of $2 Billion Loss in First Quarter

Ford expects a loss of about $2 billion in the quarter on revenue of about $34 billion.
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Ford  (F) - Get Report updated preliminary first-quarter results it released on Monday, saying it expects a loss wider than expectations.

Ford said Friday it expects a loss of about $2 billion in the quarter on revenue of about $34 billion. On Monday, the automaker said it expected to post negative first-quarter earnings of around $600 million.

The company noted Monday that it couldn't compute its actual loss until it determined its first-quarter tax rate. 

The automaker said Friday that it hasn't closed the books on its first quarter yet and its preliminary data hasn't been reviewed by the company's independent auditor. 

Ford is scheduled to release its first-quarter results on April 28 - the No. 2 automaker in the U.S. is expected to be negatively impacted by the coronavirus pandemic that has hurt sales across the auto industry. 

Earlier this month, Ford reported a 12.5% decline in first-quarter sales

The company sold 516,330 vehicles in the quarter, led by 263,757 trucks and 189,720 SUVs. Truck sales dropped 5.4% and SUVs declined 11%.

Sedans, of which Ford has been gradually ceasing production for two years, fell 36% to 62,853 vehicles. 

"We believe we have sufficient cash today to get us through at least the end of the third quarter with no incremental vehicle production and wholesales or financing actions," Ford's Chief Financial Officer Tim Stone said at the time. 

Ford shares were rising 5.36% Friday to $5.20.

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