Ford expects $2.2B pre-tax hit due to pension plans
It will result in a hit to Ford's net income by about $1.7 billion in the quarter
Ford Motor says contributions to employee pension plans will be responsible for a pre-tax loss in the fourth quarter.
The automaker says it will take a $2.2 billion loss due to a drop in discount rates, which leads the company to increase the amount of money that is needed to be contributed for future pensions benefits.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.54 | +0.32 | +2.58% |
In breaking down the math, Ford will record a $2 billion loss from pension plans outside the U.S., then another $600 million from other post-retirement plans globally. You then figure in the $400 million gain from U.S. pensions plans.
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It will result in a hit to Ford's net income by about $1.7 billion in the quarter. Adjusted per share earnings won't be affected.