Ford expects $2.2 billion pretax hit due to pension plans 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.



Source link

Products You May Like

Articles You May Like

It’s never too early to save for that emergency
Macy’s (M) earnings Q4 2019
JC Penney (JCP) reports fourth quarter 2019 earnings
Best Buy (BBY) Q4 2020 earnings top estimates
As coronavirus spreads, what to watch out for when it comes to money

Leave a Reply

Your email address will not be published.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