Ford Motor Co. said today it had a second-quarter profit thanks to a gain in its investment in autonomous vehicle company Argo AI.
Dearborn, Mich.-based Ford said its quarterly profit totaled $1.1 billion, or 28 cents a share, thanks to a $3.5 billion gain on its Argo investment. That compares with a year-earlier profit of $100 million, or 4 cents.
Ford and Volkswagen AG invested in Argo last year. The automakers are working with Argo AI to develop self-driving vehicles based on an Argo system.
Ford said it had adjusted loss before interest and taxes of $1.9 billion, or 35 cents a share, for the quarter, which excludes the Argo gain. That compares with an adjusted profit of $1.7 billion, or 28 cents, in 2019’s second quarter.
Ford’s U.S. deliveries fell by more than 30 percent during the quarter, amid a temporary shutdown of factories and lower demand overall stemming from the novel coronavirus (COVID-19). North America is the region responsible for the bulk of Ford profit.
The automaker’s quarterly revenue plunged 50 percent compared with a year earlier to $19.4 billion.
The company said the results represented a better-than-expected outcome from a three-month period where COVID-19 had a major impact.
“I could not be prouder of the Ford team’s optimism and effectiveness as we manage through this pandemic,” CEO Jim Hackett said in a statement.
Ford resumed North American and European operations in May after implementing additional safety measures for COVID-19.
The automaker forecast it would have adjusted earnings before interest and taxes of $500 million to $1.5 billion for the third quarter. However, on the same basis, Ford said it expects to post a full-year loss.