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Ford expects $8.2 billion Q4 gain from Rivian investment

Ford Motor Co. on Tuesday mentioned it expects to e book an $8.2 billion achieve from its funding in electrical automobile maker Rivian for the fourth quarter of 2021 when it reviews earnings Feb. 3.

The automaker carried a roughly 12 p.c stake in Rivian when it went public in November after investing greater than $800 million within the firm. Though the 2 sides late final 12 months canceled plans to collectively develop a automobile, CEO Jim Farley instructed Automotive Information that Ford was happy with the corporate and pleased with its funding.

The Rivian achieve was one in every of plenty of particular gadgets Ford plans to report when it releases earnings subsequent month.

Ford on Tuesday additionally mentioned it might reclassify a earlier $900 million non-cash achieve from Rivian into its particular gadgets. That implies that determine will now not be included in its adjusted EBIT forecast.

Along with the Rivian achieve, Ford additionally expects a non-cash $3.9 billion full-year achieve (together with a $3.5 billion fourth-quarter achieve) from an annual reevaluation of worldwide pension and different post-retirement worker advantages. Ford says it is “principally attributable to increased low cost charges and asset returns.”

The automaker will additional report $1.7 billion in prices related to repurchasing and redeeming greater than $7.6 billion in high-cost debt within the fourth quarter, in addition to a $3.6 billion non-cash tax particular merchandise associated to adjustments in Ford’s international tax construction.

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