Ford expects $2.2 billion pretax hit due to pension plans, retirement benefits in Q4

Earnings

An employee works on the assembly line installing parts on the Duratech 35 V6 engine at the Ford Motor Co. Engine Plant in Lima, Ohio, U.S. on Friday, March 28, 2014.

Ty Wright | Bloomberg | Getty Images

DETROIT — Ford Motor expects to take a pretax hit of about $2.2 billion in the fourth-quarter due to contributions to its employee pension plans and retirement benefits.

The automaker, in a filing with the Securities and Exchange Commission after the bell Wednesday, said the loss includes $2 billion associated with pension plans outside the U.S. and $600 million connected to other post-retirement employee benefit plans globally.

It said about $400 million of those losses are expected to be offset by gains associated with pension plans in the United States. On an after-tax basis, the loss is expected to reduce Ford’s net income by about $1.7 billion in the fourth quarter.

The automaker said the loss will not impact adjusted earnings per share because it’s a special item.

The stock closed down less than 1% Wednesday to $9.16. Shares were largely unchanged during Thursday’s premarket. Ford shares are up 7.8% during the past year, but down 1.5% in 2020.

The Dearborn-based automaker is scheduled to report fourth-quarter and full-year earnings after the bell on Feb. 4.

In October, Ford lowered its 2019 earnings guidance to between $6.5 billion and $7 billion, or $1.20 to $1.32 per share. It previously said it would earn between $7 billion and $7.5 billion, or $1.20 to $1.35 per share.

Products You May Like

Articles You May Like

Coronavirus live updates: South Korea reports 100 new cases, Singapore imposes limited lockdown measures
Morgan Stanley CEO James Gorman tells 60,431 employees: ‘Your jobs are secure’ this year
Walmart to offer rent relief to shops within its stores and ease financing for suppliers
Coronavirus live updates: Global cases top 500,000 amid warnings pandemic may be deadlier than 1918 flu
Coronavirus hits already struggling US farmers: ‘We’ve stopped saying it can’t get worse’

Leave a Reply

Your email address will not be published. Required fields are marked *