After General Motors also pulls ford its profit forecast for the full year. The reason is the pending ratification of the agreement with the United Auto Workers (UAW) union, the car manufacturer announced on Thursday after the US stock market closed.
Ford and UAW negotiators had a strike Wednesday after a six-week strike provisional agreement concluded. The contract has a term of 4.5 years and provides for record wage increases. The agreement still needs to be approved by union leadership and members. In July, Ford raised its profit forecast for the full year to eleven to twelve billion dollars before taxes and interest due to the high demand for SUVs and pickup trucks. Ford shares fell around 5 percent in after-hours trading.
In the third quarter, Ford increased its sales by 11 percent to $44 billion. The bottom line was a profit of $1.2 billion after a loss of $827 million in the previous year. The business with electric vehicles posted a higher-than-expected loss before interest and taxes of $1.3 billion.
Analysts surveyed by LSEG had forecast a third-quarter net profit jump of 46 percent to $1.8 billion. Sales should grow by 11 percent to $41.2 billion, so that the operating return would improve to 6.4 percent.