DETROIT — Ford Motor Co. on Wednesday said it will take a fourth-quarter money hit of about $2.2 billion for how it accounts for liabilities on worker pension plans and retirement gains.
The automaker, in a submitting with the Securities and Trade Fee, claimed the strike includes a $2 billion loss associated with pension plans outside the country. It also consists of a $600 million reduction involved with put up-retirement personnel reward strategies globally, even though that was partially offset by a $400 million attain linked with pension strategies in the U.S.
Overall, Ford reported the “remeasurement loss” on pension liabilities is expected to lessen its quarterly web cash flow by about $1.7 billion, whilst Ford said it will not affect its whole adjusted earnings just before desire and taxes determine or modified earnings for each share. Ford noted it accounts for pension remeasurement gains and losses when they come about, fairly than amortizing individuals final results in excess of time.
The automaker will report fourth-quarter and entire-calendar year earnings Feb. 4.
Ford explained the unfunded status of its pension funds grew to $6.8 billion at the conclude of 2019, up from $6.3 billion at the finish of 2018. Unfunded post-retirement liabilities grew to $6.1 billion in 2019 from $5.6 billion, Ford mentioned.
CFO Tim Stone in Oct mentioned Ford anticipated total 2019 earnings right before fascination and taxes of $6.5 billion to $7 billion, down from its before projection of $7 billion to $7.5 billion. That would signify a decrease from the $7 billion attained in 2018.