Press "Enter" to skip to content

Earnings down, profit-sharing checks to workers decrease

Ford said Tuesday that its U.S. factory workers will receive $6,600 in profit-sharing checks, down $1,000 from the year before — reflecting the company’s lower profits in 2019.

A year ago, profit sharing for Ford workers averaged $7,600, which was up from $7,500 in 2017. This year’s checks reflect a 13% decline.

Not all 56,000 hourly workers are eligible for the negotiated benefit; checks are expected in March.

Ford awards its UAW employees $1,000 in profit sharing for every $1 billion in North American profit before taxes. Last year, GM workers averaged a profit sharing check of $10,750 while Fiat Chrysler workers averaged $6,000. Those automakers’ 2019 earnings reports come out later this week. 

Tim Stone, Ford chief financial officer, said during a media briefing the company absorbed $600 million in UAW contract-related cash bonuses that are unrelated to the profit sharing checks.

Ford reported 2019 earnings before interest or taxes — EBIT — of $6.4 billion, down from $7 billion in 2018 and $9.6 billion in 2017. The company said it made $6.6 billion pretax in North America. North America and Ford Credit continue to be the company’s only profitable units.

Source link

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *