Ford is warning of a giant drag on earnings because of pensions.
Ford will take a 4th quarter financial hit of 2 pt 2 billion dollars related to accounting for pension plans and retirement benefits. Ford tells the Securities and Exchange Commission that a remeasurement loss on pension liabilities will reduce quarterly profits by 1 pt 7 billion dollars. The one-time expense will not impact the adjusted earnings before interest and taxes, EBIT. Ford told Wall Street analysts that it forecast yearly earnings of 6 pt 5 to 7 billion, before interest and taxes. Ford reports 4th quarter and full year performance early next month.