Ford Motor said it lost $526 million in the final quarter of 2023, mainly as a result of special charges related to its employee pension plans and the reorganization of some of its overseas operations.
The automaker said fourth-quarter revenue rose to $46 billion, from $44 billion a year ago, thanks to strong sales of internal combustion vehicles and light commercial trucks.
The company’s gasoline and hybrid vehicle division earned $813 million before interest and taxes in the fourth quarter, and its commercial vehicle division earned $1.8 billion. The unit that makes electric vehicles lost $1.6 billion.
John Lawler, Ford’s chief financial officer, said the company’s fourth-quarter earnings were also affected by an extended strike by the United Automobile Workers union and by higher labor costs resulting from the new contract it signed with the UAW
“You adjust for those two factors and you’re looking at a very strong quarter,” Mr. Lawler said on a conference call.
Ford previously said the strike cut its pretax profit by $1.7 billion in 2023.
Looking ahead, Ford said it expects to make $10 billion to $12 billion in adjusted earnings before interest and taxes this year.
Speaking to financial analysts, Ford CEO Jim Farley said the company is adjusting its investments in electric cars, putting less emphasis on larger vehicles and more on smaller models that will use a low-cost design that Ford is working on.
A small Ford EV would likely compete with a more affordable car that Tesla is expected to introduce in 2025. “The ultimate competition will be the affordable Tesla and the Chinese manufacturers,” Mr. Farley said.
Ford reported a profit of $4.3 billion in 2023, compared with a loss of $2 billion in 2022. Revenue in 2023 rose to $176 billion, from $158 billion in 2022. The company said the 58,000 UAW workers will receive profit-sharing bonus of $10,400 based on his performance in 2023;
The automaker said it wanted to improve its financial performance by investing less in some areas, such as electric vehicles, while setting higher profit targets for the projects it was still putting money into. to projects that have credible plans to deliver their targeted returns,” Mr Lawler said in a statement.
Ford shares rose about 6 percent in extended trading after the earnings announcement.