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The
automaker said Wednesday that it expects its full-year adjusted
pretax income to range between $7 billion and $8.5 billion. The
company's adjusted pretax income was $10.2 billion in 2024.
The company cited “headwinds related to market factors."
Ford has been grappling with stubbornly high warranty expenses
and lagging cost-cutting efforts. In the July-September quarter,
the company took $1 billion in accounting charges to write down
assets for a canceled three-row electric SUV.
Model e, Ford's electric vehicle business, posted a full-year
loss of $5.08 billion for 2024 as revenue fell 35% to $3.9
billion. The company's outlook calls for the EV unit to lose
between $5 billion and $5.5 billion this year.
Ford said that the Model e segment's losses are due in part to
continued investment in future products, and touted $1.4 billion
in net cost improvements even as the company increased spending
to launch new battery plants and new electric vehicles.
The automaker laid out a similarly downbeat outlook for Ford
Pro, its commercial vehicle unit, and Ford Blue, which makes gas
and hybrid vehicles.
The automaker projects Ford Pro's full-year pretax profit
between $7.5 billion and $8 billion, down from $9.02 billion
this year. Ford forecast pretax earnings between $3.5 billion
and $4 billion for its Ford Blue unit, down from $5.28 billion
this year.
Ford also announced its fourth-quarter financial results, which
topped Wall Street's estimates. Still, the outlook appeared to
spook investors, which sent shares in the Dearborn, Michigan,
automaker down 5.1% in after-hours trading. The stock closed
1.5% lower during regular trading.
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