By Joseph White and Nathan Gomes

DETROIT (Reuters) -Ford Motor shares jumped on Tuesday after the automaker mentioned it is going to return extra cash to shareholders, beginning with an additional 18 cents-per-share dividend within the first quarter, becoming a member of Common Motors (NYSE:) in giving buyers extra of the money spinning from North American combustion vehicles.

Ford (NYSE:) forecast $10 billion to $12 billion in pretax revenue for 2024, after incomes $10.4 billion earlier than taxes final 12 months.

Revenue from Ford’s Professional industrial car enterprise and Ford Blue combustion car items offset steep losses from Mannequin E electrical car operations.

Ford is slowing funding in new EV capability to match slower demand following a seismic change in EV pricing over the previous 12 months, Ford executives instructed analysts.

The subsequent era of Ford EVs might be launched “solely when they are often worthwhile,” Marin Gjaja, head of the Mannequin E EV enterprise, instructed analysts Tuesday.

Ford’s North American truck and SUV enterprise – each industrial and shopper – will contribute to projected free money circulate of $6 billion to $7 billion this 12 months. Ford has dedicated to return to buyers 40% to 50% of free money circulate.

“Each time that (common) dividend doesn’t attain 40-50% we’ll present a supplemental dividend,” Chief Monetary Officer John Lawler instructed reporters on a convention name on Tuesday.

“Consistency goes to be crucial,” he mentioned.

Ford shares have been up 6.1% in after-hours buying and selling after gaining 4.1% in the course of the common session. The shares thus far this 12 months have dipped 0.7%.

Ford’s electrical car operations will proceed to be a money drain this 12 months.

Mannequin E misplaced a mean of greater than $47,000 per car within the fourth quarter, Ford reported. The corporate projected a wider pretax lack of between $5 billion and $5.5 billion this 12 months.

Ford’s subsequent era of EVs “might be worthwhile and return their price of capital,” Lawler mentioned.

However Ford’s EVs won’t return 8% pretax revenue margins by 2026 – a objective set in early 2023, Lawler mentioned. “I don’t suppose anyone believes we will bridge from right here to eight% by 2026.”

Common Motors instructed buyers final week it expects its North American EVs to cowl their manufacturing prices and generate a variable revenue by the second half of this 12 months.

Ford is overhauling its EV technique in response to slower adoption by mainstream customers and the value struggle launched by Tesla (NASDAQ:), Chief Govt Jim Farley instructed analysts throughout a name on Tuesday.

Ford plans to spend money on bigger EVs akin to vehicles and vans. A “skunk works” staff is growing a low-cost small EV structure, Farley mentioned.

The automaker will make investments extra in gas-electric hybrids, which command revenue margins that “are a lot greater than EV margins,” he mentioned. Hybrid gross sales might develop by 40% subsequent 12 months, Farley mentioned.

“The EV enterprise wants to face by itself, it must be worthwhile and supply a return” above its price of capital unbiased from emissions compliance advantages, Lawler mentioned.

Each electrical F-150 Lightning Ford sells permits it to promote 12 combustion pickup vehicles and keep in compliance with U.S. emissions guidelines, Lawler mentioned.

Ford Professional, the automaker’s industrial enterprise, might be a key driver of revenue and potential money returns to buyers this 12 months. Ford Professional is forecast to earn $8 billion to $9 billion this 12 months, up from $7.2 billion in pretax revenue final 12 months.

Elevated gross sales of redesigned Ford’s Tremendous Responsibility pickup vehicles in North America following a sluggish launch final 12 months are behind the idea of upper Ford Professional earnings, Ford executives mentioned.

Ford Professional additionally expects to achieve gross sales with new electrical Transit vans in Europe, the place some cities are banning combustion automobiles in central districts, Farley mentioned. Ford’s rival, GM, final week delivered an optimistic outlook for 2024, and Chief Govt Mary Barra signaled shareholders will get extra of the money spinning from gross sales of GM’s combustion vehicles and SUVs via share buybacks. Price cuts and demand for crossover SUVs and pickup vehicles helped automakers offset inflationary headwinds and early indicators of EV demand cooling. Shoppers opted for hybrid automobiles and household SUVs as a substitute of EVs for comfort and relative ease by way of upkeep. In response, Ford and GM, which have been placing collectively bold EV plans, have begun leaning towards their higher-margin hybrid and gas-powered fashions.