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Posts Tagged ‘ford profit’

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 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 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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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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Ford Earnings Up 128% But Miss Wall Street Target

Investors wary despite strong numbers.

by on Oct.27, 2015

Ford's F-150 proved the heavy lifter, helping drive a triple-digit jump in Q3 net earnings.

(The story has been updated to revise the increase in pre-tax earnings.)

Ford Motor Co., riding high on North American demand for pickups and SUVs, saw pre-tax third-quarter profits more than double – but the maker nonetheless disappointed Wall Street by falling short of analysts’ expectations for even more.

Dearborn, Michigan-based Ford earned $2.7 billion before taxes, and 128% year-over-year increase. But net earnings were up an even more dramatic 129%, to $1.9 billion, or 48 cents per share compared with 27 cents during the third quarter of 2014.

By the Numbers!

“We’re on a really, really strong track,” declared Bob Shanks, Ford’s Chief Financial Officer. (more…)

Ford Motor Co. Sets Records, Beats Earnings Forecasts

Few clouds on the immediate horizon.

by on Jul.28, 2015

Ford hopes to drive revenues even higher with the new Limited version of its F-150 pickup.

Just about any way you look at it, the second quarter was a good one for Ford Motor Co., the second-largest domestic automaker not only handily beating Wall Street analysts’ forecasts but delivering record numbers in North America and Asia/Pacific.

Even Europe came close to breaking even after years of heavy losses, noted Ford President and CEO Mark Fields. All told, the maker delivered net income of $1.9 billion per share, a 44% or $544 million year-over-year rise. On a per-share basis, Ford made 47 cents. That was up seven cents per share compared to the second-quarter of 2014 – and 10 cents more than the Wall Street consensus forecast.

By the Numbers!

“We delivered an outstanding second quarter, a great first half of 2015, and we are confident the second half of the year will be even stronger,” declared Fields in a prepared statement accompanying the earnings report. “The entire Ford team is focused on accelerating our One Ford plan, delivering product excellence and driving innovation in every part of our business.”

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Ford Sales, Earnings Fall Short for First Quarter

Detroit maker hurt by problems in Europe, slow U.S. rollout of F-150.

by on Apr.28, 2015

Ford CEO Mark Fields remains optimistic about the maker's expectations for all of 2015.

(This story has been updated with additional details on Ford’s Q1 earnings and full-year forecast.)

Hurt by weak sales in Europe, the slow ramp-up of its new F-150 pickup at home, as well as the strong dollars, Ford Motor Co. delivered a weaker-than-expected showing for the first quarter of 2015, earnings off 6.5%, to $924 million.

That worked out to just 23 cents a share, the Detroit maker reported, down from 25 cents a year ago. The consensus estimate on Wall Street was 26 cents per share, according to both Fact Set and Thomson Reuters. Revenues also fell short, at $31.8 billion, down from $33.9 billion a year ago.

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Nonetheless, CEO Mark Fields declared that 2015 will be a “breakthrough year,” adding in a statement that the first quarter, a good start to a year in which our results will grow progressively stronger as the new products we have been launching start to pay off.”

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After Gloomy Forecast, Ford Earnings Narrowly Beat Expectations

But numbers still down sharply for Q3.

by on Oct.24, 2014

Ford CEO Mark Fields with the 2015 Edge, one of the models critical to turning around its earnings slump.

Ford’s third-quarter earnings report is a classic test of whether you want to view the glass as half-empty or half-full.

The maker recently warned that it would deliver a substantially lower profits due to problems in Europe and other markets, as well as having to cover the cost of a big recall. And, indeed, earnings for the July to September period plunged sharply, from $1.3 billion a year ago to just $835 million.

Earnings News!

The pre-tax profit, at $1.2 billion, was off from a year-earlier $2.6 billion. But at 24 cents a share, that nonetheless managed to beat the 19-cent consensus estimate, according to analysts polled by Thomson Reuters. (more…)