Ford to record pre-tax re-measurement loss of $3bn in 2016

The Dollar Business Bureau 

American automaker Ford Motor Company said on Friday that it would earn a pre-tax remeasurement loss of around $3 billion associated to its pension plans and some other post-retirement benefits plans for employees. 

The US multinational said the remeasurement loss will not affect the company’s adjusted pre-tax gains or adjusted earnings for every share in 2016, and will be documented as a special item. 

Re-measurement is the term used for re-evaluation of the cost of an asset or liability on the financial statements of a company. 

The company will report its net profits on January 26, 2017. It reported the earnings of $0.26 per share in the past quarter where the expected earnings per share (EPS) by analysts were $0.2 a share. The difference between the estimated and actual EPS was $0.06 per share, which shows surprise earnings of 30%. 

The market capitalisation of the Ford Motor Co stands at 49.24 billion. The return on assets (ROA) value of the company stands at 3.4%. The company’s value on return on equity (ROE) stands at 26.6%, whereas Return on Investment (ROI) value stands at 3%.