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Posts Tagged ‘ford earnings’

Ford Profits Rise 63 Percent in Third Quarter

Truck sales, cost cutting helps lead the way.

by on Oct.26, 2017

Ford CEO Jim Hackett said the company is getting itself in a better position for the future with its Q3 results.

This story has been updated with new information.

Ford enjoyed a strong third quarter, reporting a 63% rise in net income to $1.6 billion, or 39 cents per share, on revenue of $36.5 billion, largely on cost control measures and strong truck sales in North America.

The company’s operating profit for the third quarter was $2 billion or 43 cents per share, which was up 40% compared with year-ago period.

Financial News!

“I want to smile with the results today because we’re going to build on this going forward,” said Ford CEO Jim Hackett during a conference call.  (more…)

Management Shake-Up Continues at Ford

Four top execs “retire;” Lincoln chief Galhotra gets big promotion.

by on Oct.24, 2017

CEO Jim Hackett continues reshaping Ford's management team in his own image.

Ford’s new CEO Jim Hackett isn’t wasting time putting his personal stamp on the company.

Four top executives, including 37-year veteran Stephen Odell and former Wall Street investment banker John Casesa, are “retiring,” Ford announced. It’s the second major shake-up since Hackett was named CEO, replacing the ousted Mark Fields back in May. Tuesday’s personnel changes, announced two days before Ford reveals its third-quarter earnings, did bring some winners to the fore, including Kumar Galhotra, the president of the Lincoln brand now becomes Ford’s chief marketing officer.

Breaking News!

“The changes we are announcing today will further align resources and improve efficiencies throughout our global markets and operations,” said Hackett, a one-time CEO of furniture maker Steelcase, who was named CEO after Fields lost favor with investors, the Ford board and chairman and family heir Bill Ford.

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Leaner, Faster, More High-Tech, Ford CEO Hackett Outlines His Vision of the Future

Maker will focus on electric vehicle development.

by on Oct.04, 2017

Ford Motor Co. CEO Jim Hackett spent his first 100 days rethinking all aspects of Ford's business.

(Updated)

Ford Motor Co.’s new CEO Jim Hackett emerged from a 100-day review of the company’s challenges, capabilities and strategies late Tuesday afternoon to reveal a series of changes expected to yield billions of dollars in savings for the second-largest U.S. automaker while also driving up sales, revenues and margins by targeting new business opportunities in both the U.S. and overseas markets.

The former head of furniture maker Steelcase, Hackett said Ford has to prepare for the disruptions threatening the auto industry while using them to boost revenues. Joined at Ford headquarters in the Detroit suburbs by four of his top lieutenants, Hackett outlined a series of key goals and changes that will include, among other things a reduction in the number of sedans and conventional passenger cars while shifting capital to the development of more utility vehicles and electrified vehicles.

Disrupting News!

Improvements in the product development and manufacturing process, meanwhile, will yield about $10 billion annual savings, said the 62-year-old Hackett. Acknowledging Ford had “fallen short on key targets,” the new CEO promised to deliver profit margins of at least 8%, up from the current 6.1%, a figure he said “simply (is) not good enough.”

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Fields Tried to Fire Hinrichs Before He Was Booted From Ford

Infighting marked final days for CEO, says report.

by on Jun.01, 2017

Ford President of the Americas Joe Hinrichs.

In a final bid to satisfy Ford shareholders – and Chairman Bill Ford – CEO Mark Fields tried to shift blame for the company’s weakening performance stock price to his top lieutenant, according to a new report. But the effort to fire Ford’s President of the Americas Joe Hinrichs was blocked and Fields himself was given his walking papers on May 19th.

In turn, the popular Hinrichs wound up with a significant promotion as part of the shake-up that saw Fields replaced by former Steelcase chief executive Jim Hackett, notes a report in Automotive News. The 50-year-old Hinrichs will now serve in the newly created post of president of global operations.

The Inside Story!

Last month’s shake-up at Ford came as the automaker scrambled to address declining U.S. sales and market share, a 38% plunge in first-quarter earnings, and a stock price that had dipped 40% since Fields was named CEO in July 2014. It hit a new 52-week low around the time Fields agreed to officially “retire” under pressure from the Ford board of directors and Bill Ford himself.

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Ford to Cut 1,400 Jobs as Part of Major Cost-Cutting Push

by on May.17, 2017

The new job cuts won't directly impact Ford's hourly workers - but they have been facing a series of temporary plant closures in recent months.

Ford Motor Co. has revealed plans to cut about 1,400 salaried jobs in North America and Asia as part of a cost-cutting plan, but the move is significantly smaller than had been suggested by some news reports earlier in the week.

The move comes as Ford struggles to boost sales and earnings after a sharp slump in recent months. The second-largest automaker has also been trying to boost its stock price, which has tumbled about 40% since Mark Fields became CEO nearly three years ago. But the initial response by investors is proving lackluster.

In the News!

“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in a statement early Wednesday, updating comments the maker had released earlier in the week.

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Ford May Cut 10% of Global Workforce

Detroit maker responding to weak profits, stockholder pressure.

by on May.16, 2017

Ford CEO Mark Fields has come under increasing pressure to boost sales and earnings.

Under increasing pressure from stockholders as sales and profits decline, Ford Motor Co. is reportedly looking at cost cuts that could include the elimination of as much as 10% of its global workforce, sources tell TheDetroitBureau.com, confirming news reports that have been emerging overnight.

With a current workforce of around 200,000 employees worldwide, that means Ford could trim as many as 20,000 jobs, a large share of those apparently in the U.S. and Asia, though the final figure could be smaller. Other measures are designed to rein in spending and reverse the sharp, 35% drop in earnings Ford suffered during the first quarter of this year – triggering widespread criticism of the carmaker’s management by analysts and investors.

Breaking News!

In a statement, Ford declined to directly address the reported job cuts, but noted, “We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities.”

(more…)

Ford’s Low Share Price Frustrates Shareholders and Execs

CEO Fields takes heat as stock, earnings, sales tumble.

by on May.12, 2017

CEO Mark Fields has tried to shift Ford's direction - but investors want quicker results.

Amidst signs of turmoil within the company, Ford’s top executives faced some sharp questions from shareholders during the first every “virtual annual” meeting.

“You both say that your main priority is to provide long-term shareholder value,” one shareholder asked. “Losing 40% of the value since Mark (Fields) took over as CEO doesn’t seem to be upholding that pledge.”

Beyond the Headlines!

In response, William Clay Ford Jr., Ford’s executive chairman and the great grandson of the company’s founder, said that the company’s stock price matters both to the Ford family and Ford’s top management. However, he added, Wall Street has historically undervalued automakers, even when they are earning substantial profits.

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Ford Profits Slide 35% on Recalls, Sluggish Sales

Number 2 Detroit maker also boosts investments in trucks.

by on Apr.27, 2017

The surge in SUV demand drove up prices but Ford still saw overall sales dip in the U.S. and China.

A flurry of headwinds put the drag on Ford Motor Co. earnings during the first quarter of 2017, the numbers dropping 35% to $1.6 billion.

It didn’t help that Ford’s latest numbers are being compared to the best quarterly earnings in company history, the $2.2 billion profit the Detroit maker delivered between January and March 2016. On the upside, Ford’s $0.40 earnings per share and $36.5 billion in total revenues did manage to beat Wall Street $0.35 earnings estimate, according to a poll of analysts by FactSet.

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Among the challenges Ford faced this time around: declining sales, increased recall costs, as well as rising prices for steel and other raw materials. There was also some hefty spending to retool operations like the Michigan Assembly Plant to produce more of the trucks Ford needs in today’s SUV and pickup-centric market, something the maker’s CEO Mark Fields declared “an investment in Ford’s future.”

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Ford Profits Slump in Third Quarter

Automaker still on track for most profitable year ever.

by on Oct.27, 2016

Ford CEO Mark Fields described the company's outlook for the industry for this year as "realistic."

Ford Motor Co., whose executives predicted that the auto industry was facing challenges, saw its net income drop by 47% to $1.08 billion during the third quarter.

The third quarter is generally regarded as the toughest for automakers because they have to absorb the high cost of models change over. However, rival automakers, such as General Motors, Fiat Chrysler Automobiles N.V. and Daimler AG, have already reported their earnings increased during the third quarter.

News Now!

“This quarter we delivered key elements of our growth plan by fortifying our core business, with the launch of the all-new Super Duty pickup, transforming Lincoln with the new Continental and investing in emerging opportunities with the acquisition of the Chariot crowd sourced shuttle service. Importantly, we remain on track to deliver one of our best profit years ever,” noted Mark Fields, Ford’s chief executive officer. (more…)

Ford Posts Lower Than Expected Q2 Profit

Despite missing analyst estimates, company sets new record.

by on Jul.28, 2016

Ford Motor Co.'s second-quarter profits fell short of analyst estimates at $2 billion.

Ford Motor Co. second-quarter profits came in below expectations, as the company’s operations in South America lost money and Ford Credit’s profits fell due to a decline in the value of off-lease used cars sold at auction during the quarter.

Overall, Ford reported net income $2 billion in the second quarter, which was down $190 million from a year ago. Additionally, total company adjusted pre-tax profit of $3 billion in the second quarter, typically the industry’s most profitable, was down $293 million while earnings per share were 49 cents per share – down 5 cents per share from a year ago.

Earnings News!

The results fell short of analyst consensus estimates of 60 cents per share; however, company revenue was up by $2.2 billion to $39.5 billion, exceeding analyst estimates of $36.1 billion. (more…)