Ford sees $1.7 billion pretax hit due to pension plans in fourth quarter

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© Reuters. A logo is seen on the grill of an E-transit concept vehicle during a press event at the Ford Halewood transmissions plant in Liverpool, Britain, December 1, 2022. REUTERS/Phil Noble/File Photo

(Reuters) -Ford Motor said on Wednesday it expects to record a pretax remeasurement loss of about $1.7 billion, related to its employees pension and other post-retirement benefits, in its fourth-quarter results.

On an after-tax basis, Ford (NYSE:) says the loss will lower its net income by around $1.3 billion.

The Detroit automaker said the loss was driven by lower discount rates from a year ago.

A remeasurement loss relates to losses arising from a company re-evaluating the value of long-term assets or foreign currency.

Ford’s announcement comes a week ahead of Detroit rival General Motors (NYSE:)’ fourth-quarter results and two weeks before its own.

Shares of Ford rose 1.6% on Thursday amid a rise in broader U.S. markets.

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