This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Ford Suspends Guidance with Expectation of $1.5bn Tariff Impact
May 6, 2025
Ford Motor suspended its full-year financial outlook due to the significant impact of auto tariffs. It expects adjusted EBIT to take a $1.5bn hit. The total tariff impact is set to hit Ford by ~$2.5bn, with Ford working to offset $1bn through measures like bonded transportation. Citing seven factors including supply chain disruptions and uncertain future tariffs, Ford withdrew its earlier forecast of up to $8.5bn in adjusted EBIT. Despite a better-than-expected Q1 profit of $0.14/share, its shares fell over 2.4% in after-hours trading. Ford’s CEO Jim Farley emphasized the unpredictability of the trade environment, calling for patience as policies evolve. Although Ford produces 80% of its US sales domestically, it still faces significant costs from tariffs and is seeking more US-based production. Its EV sales grew 11.5% but remain a small part of total deliveries. Ford plans to update its financial guidance in the next earnings report, noting the continued uncertainty surrounding trade policies and their broader impact on the auto industry.
Ford’s bonds were trading weaker across the curve, with its 6.5% 2035s down by 0.6 points to 95.5, yielding 7.15%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
Ford Upgraded to BBB- by S&P
October 31, 2023
Ford Reports Strong Q1 Earnings
April 25, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.