Ford Motor mentioned it misplaced $526 million within the closing three months of 2023, primarily because of particular expenses associated to its worker pension applications 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 12 months earlier, due to sturdy gross sales of internal-combustion autos and lightweight business vans.
The division of the corporate that makes gasoline and hybrid autos earned $813 million earlier than curiosity and taxes within the fourth quarter, and its business automobile 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 revenue within the fourth quarter was additionally damage by an prolonged strike by the United Car Employees union, and better labor prices stemming from the brand new contract it signed with the U.A.W.
“You regulate for these two components, and also you see a fairly sturdy quarter,” Mr. Lawler mentioned in a convention name.
Ford had beforehand mentioned the strike lowered its pretax revenue by $1.7 billion in 2023.
Wanting forward, Ford mentioned it anticipated to make between $10 billion and $12 billion in adjusted earnings earlier than taxes and curiosity this 12 months.
Ford reported a revenue of $4.3 billion in 2023, in contrast with a $2 billion loss in 2022. Income in 2023 rose to $176 billion, up from $158 billion in 2022. The corporate mentioned its 58,000 U.A.W. employees can be paid profit-sharing bonuses of as much as $10,400 primarily based on its efficiency in 2023.
The automaker mentioned it wished to enhance its monetary efficiency by investing much less in some areas, like electrical autos, whereas setting increased revenue targets for the tasks it was nonetheless placing cash in. “Merely ‘good’ isn’t ok and investments are going to tasks which have credible plans to ship their focused returns,” Mr. Lawler mentioned in an announcement.
Ford shares had been up about 6 p.c in prolonged buying and selling after it reported earnings.