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Ford Motor Has Enough Cash To Last At Least Through September, CFO Says

By John Rosevear – Apr 13, 2020 at 9:43AM

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Even if factories remain closed, Ford's $30 billion hoard will last a while.

Ford Motor Company (F 2.27%) said on Monday that it has enough cash, $30 billion, to stay afloat through at least the end of September even if it can't reopen its closed factories before then.

In a preliminary release of its first-quarter results, Ford said that that it had about $30 billion in cash as of April 9, including $15.4 billion borrowed from its lines of credit in March. The company closed nearly all of its manufacturing facilities around the world in March in response to the coronavirus pandemic. 

Ford F-150 pickups on the production line at Ford's Dearborn Truck Plant in Dearborn, Michigan.

Ford closed its factories in North America and Europe in March. That decision has already cost it billions in revenue. Image source: Ford Motor Company.

Ford recently reopened its factories in China, where the COVID-19 outbreak has largely faded. But as of right now, it's not clear when Ford will be able to resume production in North America and Europe. With its factories closed, Ford is unable to generate much, if any, revenue. 

Tim Stone, Ford's chief financial officer, said in a statement that the company is exploring additional financing options and looking for ways to cut costs further. "However, we believe we have sufficient cash today to get us through at least the end of the third quarter" even if Ford can't reopen its factories outside China and doesn't raise more money, he said. 

Ford said that it expects to report a pre-tax loss of roughly $600 million, and an additional $300 million in special-item charges, when it reports its first-quarter results on April 28. Its first quarter revenue was about $34 billion, down from $40.3 billion in the first quarter of 2019, on a 21% decline in wholesale shipments, it said.

Ford withdrew its financial guidance for 2020 last month. 

John Rosevear owns shares of Ford. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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