The visitor passes a Ford Escape Titanium at the Shanghai Motor Show in Shanghai on April 17, 2019.
Greg Baker | AFP | 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 earnings in the fourth quarter.
Here are the results.
- EPS adjusted: 34 cents compared to an expected loss of 7 cents
- Income: $ 33.2 billion compared to $ 33.89 billion, expected
Ford Chief Financial Officer John Lawler said the company expects to earn between $ 8 billion and $ 9 billion in pre-tax adjusted profits and generate $ 3.5 billion to $ 4.5 billion in free cash flow. adjusted in 2021. This does not take into account the global shortfall in semiconductor chips that he said could reduce Ford’s earnings by $ 1.0 billion to $ 2.5 billion this year.
“The situation of semiconductors is constantly changing, so it is premature to try to measure what
availability will mean our year-round performance, “he said in a press release.” At present, supplier estimates could suggest a loss of 10% to 20% of our production planned for the first quarter. “
Lawler in October projected that the carmaker’s adjusted pretax earnings for the fourth quarter would be somewhere between a $ 500 million loss or a level of profitability. This would fall from a profit of $ 485 million in the fourth quarter of 2019.
Lawler said the decline would be largely due to costs related to new or redesigned vehicles the company launched later this year. This included the F-150 2021 van, as well as the Bronco Sport SUV and the all-electric Mustang Mach-E crossover.
Analysts and investors are expected to overcome losses and focus on Ford’s guidance for 2021. Despite a faster-than-expected recovery from the pandemic last year, the industry now faces a shortage of semiconductor chips that drive manufacturers to cars to reduce vehicle production.
Ford on Thursday confirmed plans to cut shifts next week at plants in Michigan and Missouri that produce its profitable F-150 trucks due to a lack of chips.
Wall Street is also looking at any further changes to the business by Ford CEO Jim Farley, who replaced Jim Hackett as of October 1, and any updates to the company’s electric vehicle plans.