The automobile giant, Ford Motor, has lost an amount of $1.67 billion in the fourth quarter and had missed the expectations of Wall Street in terms of earning on the increased contributions of pension and the higher labor and warranty costs in North America. The shares of Ford saw a drop by 9% in the trading after-hours on Tuesday to reach close to $8.30 a share. This company had released their earnings after the closure of the markets.
The automaker had disappointed the Wall Street with their projections of earnings for the year 2020. It has projected the earnings for the whole of the year to be between the mark of 94 cents to $1.20 per share or the adjusted EBIT to be $5.6billion and $6.6 billion. The company had made $6.4 billion in the year 2019 which was just below the revised forecast in the year after a failure in the launch of the redesigned SUV known as Ford Explorer.
The automaker in the previous month said that it is going to take a hit of close to $2.2 billion in the last quarter because of the contributions to their plans of employee pension and the benefits of retirement. The CEO Jim Hackett said on Tuesday that the company is at the crossroads as it is executing a plan for restructuring in the world through the yearly years of the decade of 2020s.
He said that the leadership team has been determined for returning to the levels which are world-class in terms of executions of their operations and they want to do so without the loss of any momentum in creating a company which is going to thrive and create a long-term value in the ever changing times.
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