Ford sees $1.7B hit to fourth-quarter results

A logo is seen on the grill of an E-transit concept vehicle during a press event at the Ford Halewood transmissions plant in Liverpool, Britain, Dec 1, 2022. REUTERS/Phil Noble/File photo

Ford Motor said on Wednesday it expects to record a pre-tax remeasurement loss of about $1.7 billion, related to its employees pension and other post-retirement benefits, in its fourth-quarter results.

On an after-tax basis, Ford says the loss will lower its net income by around $1.3 billion.

The Detroit automaker said the loss was driven by lower discount rates from a year ago.

READ: Ford pegs cost of UAW labor deal at $8.8B, cuts annual profit view

A remeasurement loss relates to losses arising from a company re-evaluating the value of long-term assets or foreign currency.

Ford’s announcement comes a week ahead of Detroit rival General Motors’ fourth-quarter results and two weeks before its own.