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Ford Motor Co.’s sagging stock fell further after the automaker forecast a more than $5 billion second-quarter operating loss due to the coronavirus pandemic’s blow to the global car industry.
Volumes will decline significantly in every region during the three months ending in June, and the economic environment is too unclear to give full-year guidance, the second-largest U.S. automakersaid Tuesday. Ford shares fell as much as 7.4% in late trading after closing down 42% year-to-date.
The economic crisis caused by the pandemic is devastating Ford’s efforts to recover from three consecutive annualearnings declines. Chief Executive Officer Jim Hackett’s execution of an$11 billion global reorganization was undermined last year by thebotched launch of the Explorer sport-utility vehicle. Before the coronavirus hit, Hackett wascounting on a raft of new models to start reversing the company’s fortunes.
“We must not only weather this crisis; we need to emerge from it ready to build a brighter future,” the CEO said on a call with analysts.
22,412 in U.S.Most new cases today
-16% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.12 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-0.5% Global GDP Tracker (annualized), March