Ford rewards shareholders, projects big profit jump despite cost of UAW deal

Last fall, a major automaker agreed to a pay raise for striking union members. On Tuesday, the company announced an increase in dividends for shareholders. The regular dividend will more than double with the addition of a special dividend. Although the strike impacted fourth-quarter earnings, the full-year earnings still rose. The company expects strong adjusted earnings before interest and taxes for 2024. The automaker’s CEO expressed optimism about their earnings potential. The union secured pay increases and additional guaranteed pay hikes during the contract’s duration. Another automaker had also increased payouts to shareholders following a similar deal with the union. Shares of the automaker saw a significant increase in after-hours trading.