Ford Stock Drops as Automaker Projects Lower Earnings, Offsetting Upbeat Q4 Results
Key Points
- Ford shares fell short of its electric vehicle business after the automaker released a downward look Thursday morning, offsetting losses from its highly estimated quarterly results.
- The company’s electric vehicle division, Ford E-Type Ford E-Type report, reported $5.1 billion in EBIT losses in 2024.
- CEO Jim Farley said tariffs on Canada and Mexico would eliminate “billions of dollars in industry profits.”
Ford (f) On Thursday morning, the automaker released losses from its electric vehicle (EV) business, offsetting losses from its estimated quarterly results higher than the quarter.
Dearborn, Michigan-based automaker expects to adjust in 2025 Income before interest and taxes (EBIT) Between $7 billion and $8.5 billion, marking a $10.2 billion decline in 2024. The company attributes the gentle outlook to “headwinds related to market factors.”
The company’s electric vehicle division, Ford E-Type Ford E-Type report, reported $5.1 billion in EBIT loss in 2024, “as the company continues to invest in future products”, is expected to lose $5 billion to $5.5 billion in 2025. CEO Jim Farley said in a February 5 debriefing call (Alphaense provides a transcript) that the electric vehicle market (EV Market) is facing “competition as pricing pressure increases.”
Nevertheless, the company reported fourth-quarter revenue of $48.2 billion, up 5% year-on-year and adjusted Earnings per share (EPS) 39 cents. Both exceed the consensus estimate of visible α.
Ford CEO Farley points out tariffs can harm industry
Farley said in income appeal that Trump administration’s Proposed tariffs About U.S. trading partners will affect the industry and the average “higher customer prices”.
“There is no doubt that the 25% tariffs in Canada and Mexico, if they last, will have a huge impact on our industry, and billions of dollars in industry profits have been eliminated, on the work of the United States and on the adverse effects of the United States The entire value system of our industry,” Farley said.
Ford shares fell more than 6% in early Thursday morning trading. They lose more than Over the past year, it has been one fifth of its value.