Ford’s Quarterly Loss Offset by Sales Growth, Company Reports

According to Ford Motor, they incurred a loss of $526 million in the last three months of 2023 due to special charges related to employee pension programs and overseas operation reorganization. However, the automaker’s revenue for the fourth quarter increased to $46 billion, up from $44 billion in the previous year, driven by strong sales of internal-combustion vehicles and light commercial trucks.

The gasoline and hybrid vehicle division of the company earned $813 million before interest and taxes in the fourth quarter, while the commercial vehicle division made $1.8 billion. On the other hand, the electric vehicle unit incurred a loss of $1.6 billion. Ford’s chief financial officer, John Lawler, attributed the company’s fourth-quarter profit decline to an extended strike by the United Automobile Workers union and higher labor costs following the new contract with the U.A.W.

Looking ahead, Ford anticipates adjusted earnings before taxes and interest to range between $10 billion and $12 billion this year. The company reported a profit of $4.3 billion in 2023, up from a $2 billion loss in 2022, with revenue increasing to $176 billion from $158 billion in 2022. Additionally, Ford announced that its 58,000 U.A.W. workers would receive profit-sharing bonuses of up to $10,400 based on the company’s 2023 performance.

Ford aims to enhance its financial performance by reducing investments in areas such as electric vehicles, while setting higher profit targets for remaining projects. The company’s shares rose approximately 6 percent in extended trading following the earnings report.

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