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.

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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.

TickerSecurityLastChangeChange %
FFORD MOTOR COMPANY4.47-0.36-7.45%

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.

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