: Ford’s stock drops 4% after carmaker pulls guidance, EV unit loses $1.3 billion

by | Oct 26, 2023 | Stock Market

Ford Motor Co.’s stock dropped 4% after hours Thursday after the carmaker reported lower-than-expected quarterly earnings and withdrew its guidance for the year, citing the pending agreement with the United Auto Workers. Ford
also reported an adjusted loss of $1.3 billion for its EV unit, saying that customers interested in EVs are “unwilling” to pay the vehicles’ premium prices.

“Our business is never short of challenges, especially right now with the evolution of the EV market,” Chief Executive Jim Farley told analysts in a call following results. Ford earned $1.2 billion, or 30 cents a share, in the third quarter, swinging from a loss of $827 million, or 21 cents a share, in the year-ago period. Adjusted for one-time items, Ford earned 39 cents a share. Adjustments included a $2.7 billion impairment charge related to the investment in the shuttered, Ford-backed Argo AI driverless-car company. Revenue rose 11% to $43.8 billion, the carmaker said. Analysts polled by FactSet expected Ford to report adjusted earnings of 46 cents a share on sales of $43.94 billion. Ford also reported that its EV business recorded an EBIT loss of $1.3 billion, thanks to “continued investment in next-generation EVs and challenging market dynamics.” Many customers …

Article Attribution | Read More at Article Source

Share This