Ford expects US$1.3bil hit from US strike, withdraws 2023 outlook

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Ford expects US$1.3bil hit from US strike, withdraws 2023 outlook
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The 80,000 vehicles lost will significantly impact future earnings after missing estimates in Q3.

Ford prioritised restoring operations after agreeing to a 25% wage increase to settle the UAW labour contract disputes.

“The important thing for us was to get back to work and get the factories running again,” said Ford chief financial officer John Lawler, a day after the company announced a tentative agreement with the United Auto Workers to end the nearly six-week strike. The agreement, which includes a 25% wage increase for hourly employees, followed a UAW walkout that took down three key company plants responsible for many of Ford’s most profitable vehicles.Lawlers’s remarks came as Ford reported third quarter profits of US$1.2 billion, translating into a per share results that missed analyst estimates. Revenues rose 10% to US$43. 8 billion.

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