2023-11-30 10:10:16 ET
Ford Motor Co (NYSE: F) says its recent agreement with the United Auto Workers will cost about $900 per vehicle or $8.8 billion in total. Its shares are down 1.0% at writing.
Ford’s updated guidance for full-year earnings
The legacy automaker also reinstated its full-year guidance for earnings and free cash flow on Thursday. Ford is now calling for its adjusted EBIT to fall between $10 billion to $10.5 billion in 2023.
Up until the UAW strike, the car manufacturer saw up to $12 billion of earnings before interest and taxes (adjusted) this year. Its press release reads:
Though affected U.S. operations have been restarted, guidance reflects effects of strike-related manufacturing disruptions on wholesales and revenue.
Ford stock is currently down well over 30% versus its year-to-date high.
Watch here: https://www.youtube.com/embed/WSgTZbMKih4?feature=oembedManagement remains committed to Ford+ plan
On Thursday, the multinational said its free cash flow is now expected to fall between $5.0 billion and $5.5 billion in 2023 – down from its previous guidance for up to $7.0 billion.
The reinstated outlook still, however, beats the consensus of $4.26 billion. Executives at the New York-listed firm remain bullish on the “long-term potential of Ford+ plan to generate growth and value”.
Earlier in November, Ford Motor confirmed that it was downsizing its previously revealed plan of setting up a battery plan in Michigan ( find out more ).
The news arrives only hours after peer General Motors Co said the labour deal would push costs up by a whopping $9.3 billion but still committed billions to shareholder returns .
General Motors CEO Mary Barra discussed the company's dividend, buyback and EV production plans with Jonathan Ferro on "Bloomberg The Open" https://t.co/2fZ9S5ebVR pic.twitter.com/VRIl2rAJnm
— Bloomberg TV (@BloombergTV) November 29, 2023
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