Ford’s Attempt to Turn Corner Boosted by Big Earnings Beat
- Strong pickup demand offsets spring plant, showroom closures
- Carmaker sees third quarter adjusted profit but full year loss
Photographer: Daniel Acker/Bloomberg
Ford Motor Co.’s restructuring efforts stayed on track despite the global pandemic with much better-than-expected results in its most recent quarter, even as the automaker projects its first full-year operating loss in more than a decade.
The automaker said Thursday its second quarter operating loss was less than half the $5 billion deficit it had predicted, due mainly to undiminished demand for its sport utility vehicles and trucks despite springtime factory and showroom closures.
In a conference call with reporters, Tim Stone, Ford’s chief financial officer, said unexpectedly strong demand for its most popular models such as its F-Series pickup allowed it to charge higher prices with lower incentives. The automaker also benefited from a smooth ramp-up at its plants, which returned to 95% of pre-virus production by the end of the second quarter.