Advertisement
Canada markets open in 2 hours

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7316
    +0.0019 (+0.25%)
     

  • CRUDE OIL

    82.97
    +0.16 (+0.19%)
     

  • Bitcoin CAD

    87,221.92
    -3,729.80 (-4.10%)
     

  • CMC Crypto 200

    1,352.01
    -30.56 (-2.21%)
     

  • GOLD FUTURES

    2,341.50
    +3.10 (+0.13%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,494.00
    -170.50 (-0.97%)
     

  • VOLATILITY

    16.25
    +0.28 (+1.75%)
     

  • FTSE

    8,091.58
    +51.20 (+0.64%)
     

  • NIKKEI 225

    37,628.48
    -831.60 (-2.16%)
     

  • CAD/EUR

    0.6817
    -0.0002 (-0.03%)
     

Ford records $8.2 billion fourth-quarter gain from Rivian investment

Reuters
Updated ·2 min read
FILE PHOTO: Ford Motor Co's logo pictured in 2019

(Reuters) -Ford Motor Co said on Tuesday its fourth-quarter results would include an $8.2 billion gain on its investment in Rivian Automotive Inc, following the electric-vehicle maker's blockbuster market debut in November.

Rivian had soared as much as 53% to cross $100 billion in the biggest initial public offering of 2021, but the company's shares have dropped over 27% since then.

The stock closed 8.5% lower on Tuesday after hitting its weakest since the IPO amid a broader tech selloff on Wall Street.

Ford, an early investor in Rivian, currently owns about 12% of the California-based company and has itself been racing toward electrification in a shift away from traditional gasoline-powered cars as demand for green transport surges.

ADVERTISEMENT

It has pledged to invest more than $30 billion on EVs by 2030.

In 2019, the 118-year-old Detroit automaker invested $500 million in Rivian, with plans to use the EV maker's platform to build a new Ford-branded electric vehicle, but the companies dropped those plans in 2021.

Ford, which is reporting its fourth-quarter results on Feb. 3, also said on Tuesday that it would reclassify its $900 million first-quarter 2021 non-cash gain on the Rivian investment as a special item.

The reclassification will change the automaker's full-year adjusted earnings before interest and taxes (EBIT) guidance that was previously forecast between $10.5 billion and $11.5 billion including the gain.

Ford also said it would record about $1.7 billion in costs associated with buying back and redeeming more than $7.6 billion in high-cost debt in the fourth quarter.

It will also mark a non-cash gain of about $3.5 billion in the fourth quarter and $3.9 billion for the full year related to the remeasurement of its global pension and other post-retirement employee benefits.

Ford also said it would report a $3.6 billion non-cash benefit, mostly due to changes in its global tax structure.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Devika Syamnath)