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Ford expects $2.2 billion pretax hit due to pension plans, retirement benefits in Q4

An hand works on the assembly line installing parts on the Duratech 35 V6 engine at the Ford Motor Co. Engine Plant in Lima, Ohio, U.S. on Friday, Step 28, 2014.

Ty Wright | Bloomberg | Getty Images

DETROIT — Ford Motor expects to take a pretax hit of about $2.2 billion in the fourth-quarter due to contributions to its worker pension plans and retirement benefits.

The automaker, in a filing with the Securities and Exchange Commission after the bell Wednesday, mentioned the loss includes $2 billion associated with pension plans outside the U.S. and $600 million connected to other post-retirement staff member benefit plans globally.

It said about $400 million of those losses are expected to be offset by gains associated with old-age pension plans in the United States. On an after-tax basis, the loss is expected to reduce Ford’s net income by about $1.7 billion in the fourth cantonment.

The automaker said the loss will not impact adjusted earnings per share because it’s a special item.

The stock thick down less than 1% Wednesday to $9.16. Shares were largely unchanged during Thursday’s premarket. Ford deals are up 7.8% during the past year, but down 1.5% in 2020.

The Dearborn-based automaker is scheduled to report fourth-quarter and full-year earnings after the bell on Feb. 4.

In October, Ford lowered its 2019 earnings control to between $6.5 billion and $7 billion, or $1.20 to $1.32 per share. It previously said it would earn between $7 billion and $7.5 billion, or $1.20 to $1.35 per piece.

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