December 2, 2023

Visitors walk past a Ford Escape Titanium at the Shanghai Auto 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 through 2025, the company announced Thursday as it posted better-than-expected earnings in the fourth quarter.

Here’s how Ford compared to Wall Street expectations based on Refinitiv’s average estimates.

  • Adapted EPS: 34 cents versus an expected loss of 7 cents
  • revenue: $ 33.2 billion versus $ 33.89 billion expected

Ford CFO John Lawler said the company forecasts adjusted pre-tax profit of between $ 8 and 9 billion and adjusted free cash flow of between $ 3.5 and 4.5 billion in 2021. This doesn’t account for a global shortage of Semiconductor chips, which he said could cut Ford’s earnings by $ 1.0 billion this year to $ 2.5 billion.

“The semiconductor situation is constantly changing, so it is premature to attempt to determine its size
Availability will mean for our full year performance, “he said in a press release.” Currently, supplier estimates could suggest losing 10% to 20% of our planned production in the first quarter. “

Lawler forecast in October that the automaker’s adjusted pre-tax profit would be between a loss or breakeven for the fourth quarter of $ 500 million. That would be a decrease of $ 485 million in the fourth quarter of 2019.

Lawler said the decline was mainly due to costs related to new or redesigned vehicles the company launched towards the end of the year. These included the 2021 F-150 pickup as well as the all-electric crossover Bronco Sport SUV and Mustang Mach-E.

Analysts and investors are expected to look past the loss and focus on Ford’s guidance for 2021. Despite a faster-than-expected recovery from the pandemic last year, the industry is now facing a semiconductor chip shortage that is causing automakers to cut vehicle production.

Ford on Thursday confirmed plans to cut shifts at its Michigan and Missouri plants that manufacture the profitable F-150 pickups due to the shortage of chips.

Wall Street is also awaiting further business changes from Ford CEO Jim Farley, who replaced Jim Hackett effective October 1, as well as updates to the company’s electric vehicle plans.