Ford Motor Co. pulled its full-year earnings projection on Thursday due to the pending ratification of its contract with the United Auto Workers (UAW). It warned of increased losses on electric vehicles, sending the company’s shares down nearly 5% after-hours.
The union and Ford negotiated a tentative agreement on Wednesday that included a 25% wage increase for 57,000 workers over four and a half years, effectively ending a walkout at several of the automaker’s largest plants.
Like many of its competitors, Ford is “trying to find the balance between price, margin, and EV demand,” according to Lawler. According to LSEG data, Ford’s adjusted third-quarter profits per share of 39 cents fell short of the Wall Street average of 45 cents.
Ford’s EV company reported a $1.3 billion loss in earnings before interest and taxes, which was more significant than projected. The Ford Model E unit will lose $4.5 billion for the fiscal year.
Ford’s third-quarter revenue increased 11% to $44 billion, with a profit of $1.2 billion compared to a deficit of $827 million the previous year. The carmaker reported more significant year-on-year revenue, EBIT, and EBIT margins for its Ford Pro commercial vehicle division and Ford Blue combustion and hybrid vehicle business.
