Ford: expects fourth-quarter loss on pension plans

(CercleFinance.com) - Ford said on Thursday that it expected to record a pre-tax loss of approximately 2.
2 billion dollars in the fourth quarter, due to its pension and post-retirement employee benefit plans.

This includes a 2 billion dollar loss associated with pension plans outside the US and a 600 million dollar loss associated with employee benefit plans globally, albeit partly offset by a 400 million dollar gain associated with pension plans in the US, the carmaker said.

Ford said it uses the mark-to-market method of accounting for pension and other employee benefits, meaning that gains and losses are recognized when incurred rather than amortized over time.

After-tax, the loss is expected to reduce Ford's fourth-quarter net income by about 1.7 billion dollars.

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