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Posts Tagged ‘ford earnings’

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.”

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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.”

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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.

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“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…)

Ford Posts Profit, Operating Margin Records

“Essentially everything has improved,” says CFO Shanks.

by on Apr.28, 2016

Ford CEO Mark Fields has been trying to shift Ford to focus on broader "mobility" opportunities.

Ford handily outperformed expectations as it delivered record net profits and operating income for the first quarter of the year on Thursday.

Net income jumped 113% to $2.45 billion for the January-to-March quarter, or 61 cents a diluted share. A year ago, Ford’s net totaled $1.3 billion, or 29 cents a share. Excluding one-time items, Ford earned 68 cents a share compared to a Wall Street forecast averaging 48 cents.

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“Essentially everything has improved,” said Ford Chief Financial Officer Bob Shanks, who also said Ford expects 2016 overall to meet or exceed the company’s strong performance last year.

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GM, Ford Insist They Will Remain Profitable in Deep Recession

Taking a “forward lean” into a “downside scenario.”

by on Mar.28, 2016

GM's Alan Batey introducing the 2017 Chevy Bolt.

Seven years after Detroit’s auto industry nearly collapsed, officials at the two largest domestic makers are taking pains to assure investors they will not only survive but thrive during the next big economic downturn.

Fears that the U.S. car market has peaked after hitting record sales of 17.5 million vehicles last year has made Wall Street increasingly wary, driving down the share prices for all the domestic makers, even as they report strong profits. But two top General Motors and Ford executives painted very different pictures for investors as the New York Auto Show opened to strong public attendance.

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“We believe the market is eventually going to plateau, but not in the immediate future,” declared Alan Batey, president of GM North America, during the annual Automotive Summit sponsored by Bank of America Merrill Lynch. And even if sales do take a tumble, he stressed, “We have reduced our break-even point to between 10 million and 11 million annual sales for the industry.”

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Ford Expects Record Profits; GM Sees Own Earnings Growth

Makers increase returns to shareholders; GM boosts stock buyback program.

by on Jan.13, 2016

Ford CEO Mark Fields showing off a new piece of technology at CES last week.

Investors take notice: while the stock market hasn’t been kind to the auto industry in recent weeks – or just about anyone else, for that matter – Detroit’s two largest carmakers are making some upbeat projections for 2016 that could make nervous shareholders happy.

Ford Motor Co. now expects to close the books on 2015 with a record pre-tax profit, with 2016 numbers to be “equal to or higher.” And GM is boosting its own earnings outlook for 2016. Both companies now plan to up their cash payouts to shareholders, while GM is expanding its ongoing stock buyback program.

Insight!

“This pattern of strong returns gives us a great platform to build on as we enter the year with a focus on strengthening our core business and engaging aggressively in emerging opportunities through Ford Smart Mobility,” said Ford CEO Mark Fields, in a statement detailing Ford’s forecast.

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Ford Finds Way to Boost Bottom Line by $1.5 Billion

Ford Europe now shows black ink after a decade in the red.

by on Jan.07, 2016

Ford's earnings may look better but its stock prices continues to slide.

In a move that will give the company’s bottom line an immediate, $1.5 billion boost, Ford Motor Company is changing its method for reporting pension and other post-retirement employee benefits.

The change will provide a clearer view of Ford’s operating performance and segment results, according to Bob Shanks, the maker’s chief financial officer. In addition, Ford’s 2015 pre-tax profit, excluding special items, is now expected to increase to somewhere between $10 billion and $11 billion when the company issues its yearly financial statement late this month.

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Ford retrospectively applied this change and revised prior quarterly results. For the first nine months of 2015, the maker now says it made $8.2 billion, compared to the originally reported $7 billion in net earnings. The changes were felt in a number of regions, perhaps most significantly in Europe which has been struggling to get back into the black for a decade. Instead of another loss for the first three quarters, Ford now says it earned $128 million there.

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