2023-10-26 17:19:53 ET
Ford ( NYSE: F ) on Thursday withdrew its full year 2023 guidance due to the pending ratification of its tentative agreement with the United Auto Workers (UAW), sending its shares down nearly 5% in extended trading.
Ford ( F ) stock slipped 4.5% to $10.86 after hours.
The carmaker and the union late on Wednesday reached a tentative deal to end a six-week long strike by UAW workers. The agreement includes a 25% general wage increase over four years for the 57K Ford ( F ) workers represented by the union.
Ford's ( F ) guidance withdrawal follows a similar move by "Detroit Three" rival General Motors ( GM ) on Tuesday, which cited uncertainty around the UAW strike. The union on the same day expanded its strike with another 5K workers walking out at GM's Arlington, Texas plant.
According to Mich.-based consultancy Anderson Economic Group, five full weeks of the UAW strike has so far cost more than $9.3B in economic losses for the auto industry, with more than $4B of those coming in original equipment manufacturer losses.
Ford's ( F ) Q3 adjusted earnings per share of $0.39 missed estimates by 7 cents. Revenue of $43.80B beat expectations, but missed after excluding revenue from Ford Credit. Quarterly net income was $1.2B compared to a loss of $827M a year ago.
The company also recorded an EBIT loss of $1.3B in its electric vehicle segment due to ongoing price wars, though Q3 wholesales of Ford Model e vehicles increased 44% and revenue rose 26%.
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Ford follows GM in withdrawing 2023 guidance, reports operating loss in EV segment