New York – Ford resume on thursday 2023 Guidance The forecast was canceled last month due to the fallout from worker strikes and negotiations with the United Auto Workers union.
The guidance calls for adjusted earnings before interest and taxes (EBIT) of $10 billion to $10.5 billion and adjusted free cash flow of $5 billion to $5.5 billion. That compares with its previously announced adjusted EBIT of $11 billion to $12 billion and adjusted free cash flow of $6.5 billion to $7 billion.
Ford said the new UAW labor agreement is expected to cost $8.8 billion over the life of the contract, which is set to expire in April 2028. General Motors On Wednesday, there was an impact of $9.3 billion over the life of the agreement.
Ford Chief Financial Officer John Lawler said on Oct. 26 during the company’s third-quarter earnings report that Ford was “well positioned” to hit its guidance ahead of the UAW strike that ends in about six weeks.
At the time, Lawler said the UAW strike had cost the company $1.3 billion in revenue as it lost production of about 80,000 vehicles, including about $100 million in the third quarter. On Thursday, the company updated the impact to $1.7 billion, including $1.6 billion in the fourth quarter.
Ford further confirmed Thursday that the UAW deal is expected to increase the cost of each assembled vehicle by about $900 by 2028. Lawler previously said Ford would work to “increase productivity and efficiency and reduce costs across the company” to offset additional costs and hit previously announced profitability targets.
The company said it plans to cancel or postpone $12 billion in investments related to electric vehicles.
“We have a talented team who are highly disciplined in allocating capital so we can execute consistently and generate strong growth and profitability,” Lawler said in Thursday’s statement, citing the company’s Ford+ turnaround plan. capability and less cyclical.”
Lawler is expected to discuss the company’s recovery guidance at a meeting Barclays Investor Conference Thursday morning.
Ford’s latest news comes a day after General Motors said it plans to raise its quarterly dividend 33% next year to 12 cents a share; launch a $10 billion accelerated stock buyback program; and reinstate 2023 guidance, putting the UAW on strike This includes approximately $1.1 billion in EBIT (or adjusted EBIT).
General Motors forecasts net profit attributable to shareholders of US$9.1 billion to US$9.7 billion; adjusted profit before interest and tax of US$11.7 billion to US$12.7 billion; and adjusted earnings per share of approximately US$7.20 to US$7.70.
Both UAW agreements include benefits such as hourly wage increases of at least 25 percent, restoration of cost-of-living adjustments and increased profit-sharing payments.
chrysler parent company starThe company, the second of the “Big Three” U.S. automakers to reach an agreement with the United Auto Workers, has not disclosed the expected cost of the labor agreement with the union.
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