Ford to record $600 million pretax pension charge in fourth quarter

DETROIT — Ford Motor mentioned it is going to report pretax costs of $600 million in its fourth-quarter outcomes due to changes in its worker pension plans and different postretirement advantages.

The Detroit automaker mentioned the particular costs, which can have an effect on its internet earnings however not its adjusted outcomes or money, are cut up between home plans and people outdoors the U.S.

“The remeasurement loss for U.S. plans was largely pushed by actuarial losses in contrast to plan assumptions,” Ford mentioned in a public submitting after markets closed Thursday. “The remeasurement loss for non-U.S. plans was largely pushed by adjustments in key plan measurement assumptions, akin to improved life expectancy.”

On an after-tax foundation, Ford mentioned the remeasurement loss is anticipated to lower its internet earnings by about $500 million primarily based on the tax affect in the jurisdictions the place there are remeasurement positive aspects and losses.

Ford mentioned its retirement plans stay totally funded and the costs wouldn’t change its expectations for pension contributions in 2026.

The brand new particular costs are in addition to about $19.5 billion in particular gadgets the corporate disclosed final month associated to a restructuring of its enterprise priorities and a pullback in its all-electric automobile investments, most of which Ford mentioned would happen through the fourth quarter.

Automakers generally exclude “particular gadgets” or one-time costs from their adjusted monetary outcomes to present traders with a clearer image of their core, ongoing enterprise operations.

Ford is scheduled to report its fourth-quarter outcomes after markets shut on Feb. 10.