Shares of General Motors ( NYSE: GM) were down on Monday after competitor Ford Motor Business ( NYSE: F) alerted that it will post a loss for the first quarter and that it doesn’t expect to reopen its idling factories soon.
Since 11: 45 a.m. EDT, GM’s shares were down about 5.2%from Friday’s closing cost.
In a declaration released before the marketplaces opened on Monday, Ford said that it will report an adjusted operating loss of about $600 million for the very first quarter on a 16?cline in profits after it was required to suspend production in The United States and Canada and Europe in mid-March due to the coronavirus pandemic.
Image source: General Motors.
Ford likewise said that it has about $30 billion in money staying, enough to last at least through the third quarter if it can’t resume its plants.
GM hasn’t shared any financial information because the quarter ended on March 31, but it’s probably in roughly the same boat as Ford. GM’s big pickups sold well in the first quarter, however sales of its other items slid as the majority of its dealerships shut down in March. Like Ford, GM drew down its lines of credit and made a series of transfer to cut costs, however unlike Ford, GM has maintained its dividend for the time being.
Ford stated that it’s dealing with a plan to reopen its factories in phases, beginning before the end of June. Given that any such strategy will involve the unions in the U.S. and Canada that also represent GM’s factory workers, it’s likely that GM will follow a comparable schedule.
Car financiers can expect a full upgrade when GM reports its first-quarter earnings prior to the marketplace opens on May 5.
John Rosevear owns shares of Ford and General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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John Rosevear owns shares of Ford and General Motors.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy