DJ Ford's Results Hindered by Lower Truck Output, Air-Bag Recall
Ford Motor Co. said its fourth-quarter earnings were dented by lower truck output, and it vowed to nearly double its investment in electric and driverless cars.
Ford on Thursday said net income reversed to a loss of $2.8 billion for the September-to-December period, hurt by a sizable air-bag safety recall as well as planned factory downtime from its changeover to a redesigned F-150 pickup truck.
The Dearborn, Mich., auto maker said pretax profit adjusted for one-time items, including the air-bag recall, totaled $1.7 billion, or 34 cents per share. Analysts were expecting a loss of 7 cents a share, according to FactSet.
Ford also said through 2025 it will spend $22 billion on electric vehicles and another $7 billion to develop autonomous vehicles. Valuations for Tesla Inc. and many electric-vehicle startups have soared in recent months, and some analysts have said Ford's plans in that space appeared to lag behind those of rival General Motors Co. and others.
Ford is in the midst of a multiyear plan to return to profit growth, after logging its fifth straight year of declining pretax income. Chief Executive Jim Farley has said a string of vehicle introductions this year should begin to lift profitability.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
February 04, 2021 16:34 ET (21:34 GMT)
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