Ford trims full-year profits outlook
Ford Motor Co trimmed its full-year guidance on Thursday, after a costly labour dispute dented profits.
The US car giant said it now anticipates 2023 full-year adjusted earnings before interest and taxes of between $10bn and $10.5bn, after strikes trimmed $1.7bn off profits.
Ford had forecast full-year adjusted EBIT of between $11bn and $12bn in July, before withdrawing guidance in October in the wake of industrial action.
Ford struck a deal with the UAW union last month after nearly six weeks of strikes, which saw 100,000 fewer trucks and SUVs produced. Around 45,000 workers walked out across Ford’s American plants demanding better wages and benefits.
The deal, which includes significant pay rises, will cost $8.8bn over the life of the contract, Ford noted, as well as adding around $900 to the cost of building each car and truck by 2028.
Ford said it would look to offset that through higher productivity and lower expenses.
The update was part of Ford’s capital markets day, which the Michigan-based car maker used to reiterate its long-term strategy, dubbed internally Ford+.
John Lawler, chief financial officer, said: "This industry is going through the biggest technology-led transformation we’ve ever seen, and some companies, old and new, are going to be left behind.
"Ford+ is the right strategy to win: we’ve got a highly talented team that allocates capital with great discipline, so that we’re executing with consistency, generating strong growth and profitability, and are less cyclical."
Ford, which saw its shares rise 1% in pre-market trading following the update, is due to report full-year numbers on 6 February.