Ford Motor reported a net loss of $526 million in the last quarter of 2023, attributed to charges related to its employee pension programs and the reorganization of its overseas operations. However, the company’s revenue for the fourth quarter increased to $46 billion, driven by strong sales of internal-combustion vehicles and light commercial trucks. The gasoline and hybrid vehicle division of Ford earned $813 million in the fourth quarter, while its electric vehicle division reported a loss of $1.6 billion. Ford’s chief financial officer, John Lawler, mentioned that the company’s profit was also impacted by a prolonged strike by the United Automobile Workers union, as well as higher labor costs from a new contract with the U.A.W.
Despite the challenges, Ford reported a profit of $4.3 billion for 2023, a stark improvement from the $2 billion loss in 2022. The company also forecasted adjusted earnings before taxes and interest of $10 billion to $12 billion for the upcoming year. Furthermore, Ford aimed to boost its financial performance by reducing investments in certain areas, such as electric vehicles, while setting higher profit targets for the projects it continued to prioritize. As a result of this news, Ford’s stock rose approximately 6 percent in extended trading after the earnings report.
In conclusion, despite facing losses in the fourth quarter and challenges from the U.A.W. strike and higher labor costs, Ford reported a significant profit for the year 2023. The company also outlined its strategy for improving financial performance by adjusting investments and setting higher profit goals. The positive outlook for the future led to a rise in Ford’s stock value following the earnings report.