Ford Motor (F) earnings Q3 2023

DETROIT — Ford Motor on Thursday missed Wall Street’s third-quarter earnings expectations, as it restructures its operations and regroups following the end of a nearly six-week U.S. labor strike that in total has cost the company $1.3 billion.

Shares of the automatker fell about 4% in after-hours trading.

Due to the work stoppage by the United Auto Workers union, which ended Wednesday with a tentative deal, the company pulled its previously announced earnings guidance that included adjusted earnings between $11 billion and $12 billion and adjusted free cash flow of $6.5 billion to $7 billion.

Prior to the strikes, which began Sept. 15, the company was “poised” to hit its earnings guidance, Chief Financial Officer John Lawler said.

Here are Ford’s third-quarter results.

• Adjusted earnings per share: 39 cents vs. 45 cents expected by LSEG, formerly known as Refinitiv.
• Automotive revenue: $41.18 billion vs. $41.22 billion expected by LSEG.

Lawler blamed the misses on the UAW strike as well as cost and quality issues, which have plagued the automaker’s operations in recent years.

“It is the cost and quality that we need to continue working on to improve the business,” Lawler told reporters during a call. “There’s a lot of positives within the business, and, unfortunately, it’s really not all shining through because of our cost and quality.”

Lawler said the UAW strike has cost the company $1.3 billion in lost production to date, including roughly $100 million during the third quarter. He said the company lost production of about 80,000 vehicles so far due to the strike, and restarting production will be a “tremendous amount of work.”

For the third quarter, Ford swung to a net income of $1.2 billion, or 30 cents a share, from an $827 million loss, or 21 cents a share, a year earlier. Adjusting for certain items, per-share earnings were 39 cents.

Overall revenue during the period increased 11% to $43.8 billion, up from $39.39 billion a year earlier….