Ford Motor mentioned it misplaced $526 million within the final three months of 2023, primarily as a consequence of particular prices associated to its worker pension packages and the reorganization of a few of its abroad operations. .
The automaker mentioned its fourth-quarter income rose to $46 billion, from $44 billion a yr earlier, due to sturdy gross sales of inner combustion autos and light-weight industrial vehicles.
The corporate's division that makes gasoline and hybrid autos earned $813 million earlier than curiosity and taxes within the fourth quarter, and its industrial car division made $1.8 billion. The unit that makes electrical autos misplaced $1.6 billion.
John Lawler, Ford's chief monetary officer, mentioned the corporate's fourth-quarter revenue was additionally harm by an prolonged strike by the United Vehicle Staff union, and better labor prices stemming from the brand new contract that he signed with the UAW.
“You modify for these two elements, and also you're taking a look at a reasonably sturdy quarter,” Mr. Lawler mentioned on a convention name.
Ford had beforehand mentioned the strike would scale back its pre-tax revenue by $1.7 billion in 2023.
Wanting forward, Ford mentioned it expects to make $10 billion to $12 billion in adjusted earnings earlier than curiosity and taxes this yr.
Talking to monetary analysts, Ford chief government Jim Farley mentioned the corporate is adjusting its investments in electrical vehicles, placing much less emphasis on bigger autos and extra on smaller fashions that use a low-profile design. -cost that Ford labored on.
A small EV from Ford will seemingly compete with a less expensive automobile that Tesla is predicted to introduce in 2025. “The final competitors would be the inexpensive Tesla and the Chinese language producers,” Farley mentioned.
Ford reported a revenue of $4.3 billion in 2023, in contrast with a lack of $2 billion in 2022. Income in 2023 rose to $176 billion, from $158 billion in 2022. The corporate mentioned its 58,000 UAW staff will probably be paid a profit-sharing bonus of up. to $10,400 primarily based on his efficiency in 2023.
The automaker mentioned it wished to enhance its monetary efficiency by investing much less in some areas, reminiscent of electrical autos, whereas setting greater revenue targets for the initiatives it was nonetheless placing cash into. to initiatives which have credible plans to ship their focused returns,” Mr. Lawler mentioned in a press release.
Ford shares rose about 6 % in prolonged buying and selling after reporting earnings.