Ford lowers forecast for 2023 due to workers’ strike – Kommersant
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Yesterday, November 30, Ford released Updated 2023 guidance: It now expects earnings before interest and taxes (EBIT) to be between $10 billion and $10.5 billion. Ford had previously forecast earnings of $11 billion to $12 billion.
The company reported that the decrease was due to losses due to strikes at Ford plants in September and October. Workers at General Motors, Ford and Stellantis went on strike for about a month and a half, the largest strike in the United States in decades. Ford estimated the strike-related profit loss at $1.7 billion. Ford estimated the cost increases in the coming years due to the agreement with workers to increase wages and other benefits at $8.8 billion. Earlier this week, GM also worsened forecast for the year and estimated the increase in costs due to the agreement with workers at $9.3 billion.
Ford shares fell 3% yesterday.
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