DETROIT — Ford Motor Co on Thursday withdrew its full-year results forecast on account of the pending ratification of its cope with the United Auto Staff (UAW) union, and warned of upper losses on electric vehicles, sending shares of the corporate down nearly 5% after-hours.
The union and Ford on Wednesday reached a tentative agreement that included a 25% wage hike for 57,000 staff over 4-1/2 years, ending a strike at among the automaker’s biggest factories.
Ford Chief Financial Officer John Lawler in a media briefing on Thursday said the corporate will delay a few of its planned multibillion-dollar investment in latest EV production capability, citing “tremendous downward pressure” on prices.
Like lots of its competitors, Ford is “trying to search out the balance between price, margin and EV demand,” Lawler said.
Rival General Motors earlier this week also withdrew its 2023 results forecast and said it might delay by a yr the opening of an electrical truck plant in Michigan.
Ford’s adjusted third-quarter earnings per share of 39 cents missed the Wall Street average goal of 45 cents, based on LSEG data.
Ford said its EV unit posted a higher-than-expected loss in earnings before interest and taxes of $1.3 billion. The corporate has forecast a full-year lack of $4.5 billion for the Ford Model e unit.
The automaker said its EV business was experiencing “sharply compressed” prices and profitability, and said customers weren’t willing to pay a premium for EVs over comparable combustion and hybrid models.
Ford’s third-quarter revenue rose 11% to $44 billion, with profit of $1.2 billion compared with a year-earlier lack of $827 million.
The automaker said its Ford Pro business vehicle business and Ford Blue combustion and hybrid vehicle business each posted higher year-on-year revenue, EBIT and EBIT margins.
The entire economic loss from the strikes on the Detroit Three automakers has reached $9.3 billion, consultancy Anderson Economic Group said earlier this week.
This Article First Appeared At www.autoblog.com
