Ford eyes $50 million pre-tax gain in Q4 from pension and OPEB plans

Ford Motor Co (F) said on Monday that it expected to record a pre-tax remeasurement gain in its fourth-quarter results of nearly $50 million associated with the company’s pension and other postretirement employee benefits (OPEB) plans.

That figure includes a $1.7 billion loss related to pension plans in the United States, a $450 million gain related to pension plans outside the United States as well as a $1.3 billion gain related to OPEB plans internationally, Ford said.

“Overall, the small remeasurement gain is primarily explained by higher discount rates compared with year-end 2021 largely offset by pension asset returns that were lower than our assumptions. On an after-tax basis, the remeasurement is expected to decrease our net income by about $220 million. The decrease is due to the net deferred tax expense we expect to recognize as a result of the variability in tax rates in the jurisdictions where there are remeasurement gains or losses,” the US auto maker said in a filing dated January 23rd.

“Including the impact of remeasurement gains and losses during 2022, we expect the underfunded status for our pension and OPEB plans to be about $0.2 billion and $4.5 billion, respectively, at year-end 2022, compared with $0.3 billion and $6.0 billion, respectively, at year-end 2021,” the company said.

The shares of Ford Motor Company closed 3.23% ($0.40) higher at $12.80 in New York on Monday, with the auto maker’s total market cap now standing at $51.46 billion.

The shares of Ford Motor Co went down 44.01% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).