Ford posts R25bn quarterly loss, offers weak 2020 forecast
Ford Motor Co on Tuesday posted a fourth-quarter loss and provided a weaker-than-expected 2020 forecast due to continued higher warranty costs, lower vehicle volumes, lower results from Ford Credit and higher investment in future transportation.
The No 2 US carmaker, struggling to complete a long-running restructuring and faced with continued losses in China, said it expects 2020 operating earnings in the range of 94 cents (about R15) to $1.20 (about R18) a share, below the $1.26 (about R18.70) analysts were expecting, according to IBES data from Refinitiv.
For the fourth quarter of 2019, Ford reported a net loss of $1.7bn (about R25bn) or 42 cents (about R6) a share, compared with a loss of $100m (about R1,4bn) or three cents (about 45 cents) a share a year earlier.
The quarter included a loss of $2.2bn (about R32bn) due to higher contributions to its employee pension plans, something it disclosed last month.
Excluding one-time charges, Ford earned 12 cents (about R1.70) a share, three cents (about 45 cents) below what analysts had expected.
Revenue in the quarter fell 5% to $39.7bn (about R591bn), above the $36.5bn (about R541bn) Wall Street had expected.