A passing car transporter is reflected in the grille of a Ford Motor Co. 2017 F-150 pickup truck on display at Sutton Ford Lincoln auto dealer in Matteson, Illinois.
Daniel Acker | Bloomberg | Getty Images
DETROIT – Ford Motor plans to invest $ 29 billion in electric and autonomous vehicles by 2025, the company announced on Thursday when it reported better-than-expected fourth-quarter results.
Here are the results.
- Customized EPS: 34 cents versus an expected loss of 7 cents
- Revenue: $ 33.2 billion vs. $ 33.89 billion, expected
Ford CFO John Lawler said the company predicts it will earn between $ 8 billion and $ 9 billion in pre-tax adjusted profit by 2021 and generate between $ 3.5 billion and $ 4.5 billion in adjusted free cash flow. That doesn’t take into account a global shortage in semiconductor chips that he said could cut Ford’s revenues by $ 1.0 billion to $ 2.5 billion this year.
“The semiconductor situation is constantly changing, so it is premature to try to measure something
availability will affect our performance over the year, ”he said in a press release. At this point, supplier estimates might suggest that we would lose 10% to 20% of our planned production in the first quarter. “
Lawler predicted in October that the automaker’s adjusted earnings before tax for the fourth quarter would fall somewhere between a loss of $ 500 million or breakeven. That would be lower than a profit of $ 485 million in the fourth quarter of 2019.
Lawler said the drop would be largely due to costs related to new or redesigned vehicles the company launched towards the end of the year. That included the 2021 F-150 pickup truck, as well as the Bronco Sport SUV and Mustang Mach-E all-electric crossover.
Analysts and investors are expected to look past the loss and focus on Ford’s outlook for 2021. Despite a faster-than-expected recovery from last year’s pandemic, the industry is now facing a shortage of semiconductor chips, forcing carmakers to produce vehicles. screw back.
Ford on Thursday confirmed plans to cut shifts next week at plants in Michigan and Missouri that produce its profitable F-150 pickups due to the chip shortage.
Wall Street is also watching for any additional business changes by Ford CEO Jim Farley, who replaced Jim Hackett effective Oct. 1, and for updates on the company’s electric vehicle plans.