Ford pulls forecast, warns tariffs will slash US$1.5b from profit
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The news: Ford Motor Co suspended its full-year financial guidance, saying US President Donald Trump’s auto tariffs will reduce 2025 adjusted earnings before interest and taxes by about USD1.5 billion ($2.3 billion).
The context: Ford gave seven factors in withdrawing its forecast, including potential “industrywide supply chain disruption,” the risk levies may increase, and possible retaliation by other countries.
The move follows General Motors cutting its profit forecast last week, saying tariffs could cost it up to USD5 billion, while Stellantis also suspended its guidance due to tariff uncertainty.
The numbers: The company expects the total tariff impact to be about USD2.5 billion, with USD1 billion offset through actions such as bonded transportation.
First-quarter net income dropped 64% from a year ago to USD471 million, as production disruptions and the cost of launching redesigned SUVs weighed on results, while revenue declined 5% to USD40.7 billion.
Earnings per share fell to 14 cents, down from 49 cents a year ago but better than the 4 cent average loss expected by analysts.
Ford’s EV and software unit posted a loss of USD849 million and has said it may lose up to USD5.5 billion this year. Ford Pro, it’s commercial vehicle unit, earned USD1.3 billion, while its gasoline-engine division reported USD96 million in EBIT.
Shares fell about 2.4% after hours.
The sources: Ford release, Bloomberg
