Ford To Record $600 Million Pretax Pension Charge In Fourth Quarter

Stocks

Summary:

Ford Motor said it will report pretax charges of $600 million in its fourth-quarter results due to adjustments in its employee pension plans and other postretirement benefits.

The Detroit automaker said the special charges, which will affect its net income but not its adjusted results or cash, are split between domestic plans and those outside the U.S.

"The remeasurement loss for U.S. plans was largely driven by actuarial losses compared to plan assumptions," Ford said in a public filing after markets closed Thursday. "The remeasurement loss for non-U.S. plans was largely driven by changes in key plan measurement assumptions, such as improved life expectancy."

On an after-tax basis, Ford said the remeasurement loss is expected to decrease its net income by about $500 million based on the tax impact in the jurisdictions where there are remeasurement gains and losses.

Ford said its retirement plans remain fully funded and the charges would not change its expectations for pension contributions in 2026.

The new special charges are in addition to about $19.5 billion in special items the company disclosed last month related to a restructuring of its business priorities and a pullback in its all-electric vehicle investments, most of which Ford said would occur during the fourth quarter.

Automakers commonly exclude "special items" or one-time charges from their adjusted financial results to provide investors with a clearer picture of their core, ongoing business operations.

Ford is scheduled to report its fourth-quarter results after markets close on Feb. 10.

Source: CNBC

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

Ford To Record $600 Million Pretax Pension Charge In Fourth Quarter

Source: CNBC

Risk Disclosure