Ford faces $1.7B Q4 Pretax Charge on Pension Accounting Adjustment

Ford’s Q4 Financial Hit

• Ford (NYSE:F) is expecting a pre-tax remeasurement loss of $1.7 billion in Q4, primarily due to its pension and other post-retirement employee benefits, OPEB.
• The remeasurement is anticipated to reduce after-tax net income by approximately $1.3 billion, although it will not affect total adjusted EBIT or adjusted EPS as it is classified as a special item.
• Cash flow in 2023 will remain unaffected by this adjustment, and it will not alter the company’s expectations for pension contributions in 2024.
• When accounting for remeasurement gains and losses, it is projected that both the pension and OPEB plans will be underfunded in 2023 by $2.3 billion and $4.7 billion, respectively, compared to $0.2 billion and $4.5 billion at the end of 2022.
• Ford will unveil its Q4 results on February 2.