Ford Motor Company (NYSE:F) 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 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.