Ford Motor Company (NYSE:F) shares slid more than 4% after hours Thursday, as the automaker’s third-quarter results made clear the impact of the United Auto Workers (UAW) strike — a day after the two sides reached a tentative agreement.
Ford reported adjusted earnings of $0.39 per share on revenue of $41.18 billion, missing Street expectations of $0.45 per share on revenue of $41.22 billion.
Ford Blue, the company’s traditional business segment, earned $1.76 billion in the quarter, while the Ford Pro commercial business earned $1.65 billion. The automaker’s Model e electric vehicle division lost $1.33 billion during the period.
The automaker also withdrew its previously issued full-year guidance, which included adjusted earnings between $11 billion and $12 billion, due to the strike.
Before the work stoppage, Ford was on pace to hit its earnings target, according to CFO John Lawler. Six weeks later, the strike has cost the company $1.3 billion in lost production.
The tentative deal to end the strike includes an initial 11% rise and increments later to take the package up to 25% over four and half years, the UAW said.
Some low-paid temporary workers would see their pay rise by more than 150% over the period.
"We told Ford to pony up and they did," UAW president Shawn Fain told reporters.
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