Ford reports quarterly loss but says sales are up
Ford Motor said it lost $526 million in the final three months of 2023, mainly as a result of special charges related to its employee pension 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 vehicles and light commercial trucks.
The company's division that 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 electric vehicle manufacturing unit suffered a loss of $1.6 billion.
Looking ahead, Ford said it expects adjusted earnings before taxes and interest this year to be between $10 billion and $12 billion.
Ford reported a profit of $4.3 billion in 2023, while it reported a loss of $2 billion in 2022. Revenue increases to $176 billion in 2023, from $158 billion in 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 projects in which it is still investing money. “Just ‘good’ is not good enough and investments are being made in projects that have credible plans to deliver targeted returns,” John Lawler, Ford's chief financial officer, said in a statement.