Ford Retracts 2025 Financial Guidance Amid Tariffs Impact
(MENAFN) U.S. auto giant Ford Motor Company has retracted its financial guidance for the full year 2025, citing an anticipated $1.5 billion dent in profits due to President Donald Trump's tariffs. This announcement comes despite the automaker surpassing first-quarter revenue and profit expectations.
In a statement released Monday, Ford projected "a tariff-related net adverse adjusted EBIT impact of about $1.5 billion for full year 2025, subject to ongoing tariff-related policy developments." Consequently, the company stated, "Due to tariff-related uncertainty, company suspends financial guidance, including full year adjusted EBIT and adjusted free cash flow."
Beyond the direct impact of the tariffs, Ford highlighted potential risks such as retaliatory tariffs, the possibility of industry-wide supply chain disruptions affecting production, and the chance of future or increased U.S. duties as reasons for this decision.
Despite the looming tariff headwinds, Ford reported $40.7 billion in total sales for the first quarter, a 5% decrease year-over-year but still exceeding forecasts. The company posted $1.02 billion in adjusted EBIT and $471 million in net income for the quarter.
Ford indicated it was "tracking" towards its initial projections for 2025, which included capital expenditures between $8 billion and $9 billion, adjusted free cash flow of $3.5 billion to $4.5 billion, and adjusted EBIT of $7 billion to $8.5 billion, prior to accounting for the tariffs.
"We are strengthening our underlying business with significantly better quality and our third straight quarter of year-over-year cost improvement, excluding the impact of tariffs,” stated Ford President and CEO Jim Farley.
The U.S. automotive sector is currently navigating a new landscape of trade duties, including 25% tariffs on imported vehicles that took effect last month and 25% duties on auto parts not compliant with the US-Mexico-Canada Agreement, which went into effect on Saturday.
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