Ford Lost $1.7 Billion in Profits from UAW Strike
November 30 2023 - 7:37AM
Dow Jones News
By Dean Seal
Ford Motor has provided a new annual earnings forecast after
previously withdrawing guidance due to the United Auto Workers
strike, which the auto giant said resulted in $1.7 billion in lost
profits.
The Dearborn, Mich.-based company said Thursday morning that it
now expects adjusted earnings before interest and taxes of $10
billion to $10.5 billion, down from its previous guidance for $11
billion to $12 billion.
The figure includes $1.7 billion in strike-related lost profits,
$1.6 billion of which came in the fourth quarter, from
interruptions in production of high-margin trucks and SUVs and
lower vehicle wholesales than previously expected.
Adjusted free cash flow is now projected to be between $5
billion and $5.5 billion, down from a prior outlook for $6.5
billion to $7 billion.
The strike was resolved in late October with a tentative labor
deal that Ford now says will cost $8.8 billion over the lifetime of
the contract in gross wages, accelerated wage progression and cost
of living adjustments.
The labor agreement is expected to have a cost effect of about
$900 per vehicle by 2028, Ford said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 30, 2023 07:22 ET (12:22 GMT)
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