Ford shares dropped by more than 4% in after-hours trading following the announcement of quarterly results and guidance that fell short of expectations.
Ford reported $46 billion in revenue for the third quarter, a 5% increase compared to the same period last year, while net income dropped to $900 million from $1.2 billion last year.
In a news release, the company attributed the decline in income to a $1 billion charge related to electric vehicles. The company announced the cancellation of a three-row electric SUV in August.
The automotive giant has revised its outlook for the year. It now projects that full-year earnings for 2024 will fall short of its original forecast. The company expects adjusted earnings to be around $10 billion, below the previously estimated range of $10 billion to $12 billion.
Bloomberg reports that this falls short of analysts’ expectations of $10.6 billion in earnings.