Ford Reports Quarterly Loss but Says Sales Grew

Ford Reports Quarterly Loss but Says Sales Grew

Ford Motor said it lost $526 million in the final three months of 2023, largely due to special charges related to its employee retirement programs and the restructuring of some of its overseas operations.

The automaker said its fourth-quarter revenue rose to $46 billion from $44 billion a year earlier, thanks to strong sales of internal combustion engine vehicles and light-duty vehicles.

The company’s division, which makes gasoline and hybrid vehicles, earned $813 million before interest and taxes in the fourth quarter, and its commercial vehicle division earned $1.8 billion. The unit, which makes electric vehicles, lost $1.6 billion.

Looking ahead, Ford expects adjusted earnings before interest and taxes to be between $10 billion and $12 billion this year.

Ford reported a profit of $4.3 billion in 2023, compared to a loss of $2 billion in 2022. Sales rose to $176 billion in 2023, up from $158 billion in Year 2022.

The company said it wants to improve its financial performance by investing less in some areas, such as electric vehicles, while setting higher profit targets for the projects it is still pouring money into. “Simply ‘good’ isn’t good enough and investments will.” “Projects that have credible plans to achieve their targeted returns,” Ford Chief Financial Officer John Lawler said in a statement.

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2024-02-06 21:53:42