Ford has been grappling with stubbornly high warranty expenses and sluggish cost-cutting efforts. In the July-September quarter, the company took $1billion (€960,000) in accounting charges to write down assets for a cancelled three-row electric SUV.
ADVERTISEMENTFord Motor Co. is forecasting weaker earnings growth for this year and further losses in its electric vehicles business as it works to control costs.
The car maker said Wednesday that it expects its full-year adjusted pretax income to range between $7bn (€6.8bn) and $8.5bn (€8.2bn). The company’s adjusted pretax income was $10.2bn (€9.8bn) in 2024.
The company cited “headwinds related to market factors”.
Ford has been grappling with stubbornly high warranty expenses and sluggish cost-cutting efforts. In the July-September quarter, the company took $1billion (€960,000) in accounting charges to write down assets for a cancelled three-row electric SUV.
EV sales pulling figures down
Model e, Ford’s electric vehicle business, posted a full-year loss of $5.08bn (€4.9bn) for 2024 as revenue fell 35% to $3.9bn (€3.8bn). The company’s outlook calls for the EV unit to lose between $5bn (€4.8bn) and $5.5bn (€5.3bn) this year.
Ford said that the Model e segment’s losses are due in part to continued investment in future products, and touted $1.4bn (€1.35bn) in net cost improvements even as the company increased spending to launch new battery plants and new electric vehicles.
Petrol and hybrid vehicles outlook gloomy
The car maker laid out a similarly downbeat outlook for Ford Pro, its commercial vehicle unit, and Ford Blue, which makes petrol and hybrid vehicles.
The car maker projects Ford Pro’s full-year pretax profit will be between $7.5bn (€7.3bn) and $8bn, down from $9.02bn (€8.9bn) this year. Ford forecast pretax earnings between $3.5bn and $4bn for its Ford Blue unit, down from $5.28bn this year.
Ford also announced its fourth-quarter financial results, which topped Wall Street’s estimates. Still, the outlook appeared to spook investors, which sent shares in the Dearborn, Michigan, automaker down 5.1% in after-hours trading. The stock closed 1.5% lower during regular trading.