By Nora Eckert and Nathan Gomes
Detroit (Reuters) -Ford Motor suspended its annual directives on Monday due to the uncertainty concerning the prices of US President Donald Trump, saying that the direct debits would cost the company around 1.5 billion dollars in adjusted profits before interest and taxes.
In February, the automaker of Dearborn, Michigan, provided for benefits before interest and taxes of $ 7.0 billion to $ 8.5 billion for 2025. This forecast did not take into account the prices.
Ford financial director Sherry House said the company was on the right track to respond to these guidelines, excluding the fees of the prices.
“We focus on managing what we control,” said House.
While competitors such as General Motors have recently provided updated advice, Ford managers said they had suspended business prospects until they have more clarity on the effect of reprisals, as well as the way consumers can react to price increases.
Ford's profit by action fell to 14 cents in the first quarter, far exceeding the estimation of LSEG analysts by 2 cents per share, but down 49 cents a year earlier. Cost and quality improvements have helped Ford beat expectations, the leaders said.
Earlier this year, the automaker had warned that the first quarter results would be affected by production disturbances linked to product launches in several factories. Net profit dropped to $ 471 million, compared to $ 1.3 billion a year earlier.
Ford’s revenues dropped from 5% to $ 40.7 billion in the quarter, but beat expectations of around $ 36 billion. The profits have obtained a boost while consumers rushed to tear the vehicles, the prices concerned would cause price increases. Ford was one of the few car manufacturers who made an incentive to grasp market share during this purchasing frenzy.
Ford said the prices would add $ 2.5 billion in cost for the year, mainly related to expenses from Mexico and China import vehicles. The automaker has suspended car exports to China, but still imports vehicles like its Lincoln Nautilus in the country.
Ford said it was able to reduce about $ 1 billion in this cost thanks to various actions, including the transport of Mexico vehicles in Canada using bond carriers, so that they are not subject to American prices, House said.
The 25% prices of Trump on automotive imports should add more than $ 100 billion in costs for car manufacturers in the United States this year, according to certain estimates.
The president approved a stay last month around the samples placed on automotive parts, providing automobile companies with credits for up to 15% of the value of vehicles assembled at the national level, as well as reductions in other tasks.
