According to foreign media reports, on January 18, Ford said that its fourth-quarter results of last year would include a profit of $8.2 billion from its investment in Rivian, and Rivian performed very well after its listing in November last year.
In 2021, Rivian's share price soared 53%, with a market capitalization of more than $100 billion, making it the largest (IPO) of the year. But since then, the company's shares have fallen more than 27 per cent. Rivian shares closed down 8.5% on Jan. 18, the lowest level since IPO.
Ford, one of the early investors in Rivian, currently owns 12% of Rivian. With a surge in consumer demand for green vehicles, Ford has also been accelerating its transition from traditional internal combustion engines to electric vehicles. Ford has pledged to invest $30 billion in electric vehicles by 2030. In 2019, Ford invested $500m in Rivian to produce a new Ford-branded electric car using Rivian's electric platform, but the two companies abandoned those plans in 2021.
On Jan. 18, Ford also said it would reclassify the $900 million in non-cash earnings from investing in Rivian in the first quarter of 2021 as a special item. The reclassification will change Ford's full-year (EBIT) forecast for adjusted earnings before interest and tax, which had been between $10.5 billion and $11.5 billion, including profits.
Ford will also report costs of about $1.7 billion in the fourth quarter, related to buybacks and redemptions of more than $7.6 billion in high-cost debt. Ford will also earn about $3.5 billion in non-cash earnings in the fourth quarter and $3.9 billion in 2021, related to Ford's recalculation of global pensions and other post-retirement employee benefits.
Ford also said it would report non-cash earnings of $3.6 billion, related to changes in its global tax structure.
It is reported that Ford will release its results for the fourth quarter of 2021 on February 3.
