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Ford Stock Drilled for Second Straight Day

Lower profit expectations drive drop in share price.

by on Oct.01, 2014

After Ford CEO Mark Fields revealed the maker would miss its 2014 profit target, the stock fell sharply.

After executives told Ford Motor Co. shareholders Monday the company would miss its profit target for 2014 as the growing expense of recall and losses from the company’s operations in Europe and South America, Ford stock fell dramatically throughout the day and it continued falling for a second straight day yesterday.

Ford stock fell by more than 2% or 32 cents per share to close at $14.79 in trading on the New York Stock Exchange Tuesday after tumbling 7.5% on Monday.

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Chief Financial Officer Bob Shanks told analysts and reports that 2014 pretax profit was now expected to be $6 billion to $7 billion, compared with an earlier projection of $7 billion to $8 billion. It attributed the change to recall-related expenses in North America and larger than expected losses in South America and Russia. (more…)

New Ford CEO Fields Fares Well with $5 Mil Pay Package

Will fall short of predecessor Mulally's pay.

by on Jul.02, 2014

Ford's new CEO Mark Fields with the 2015 Edge.

He’s taking on more duties, but Ford Motor Co.’s new CEO Mark Fields also will be getting a few more dollars — and perks – after taking over for Alan Mulally, who retired as chief executive on Monday.

In a regulatory filing today, Ford disclosed that Fields will get a pay package in his new position worth at least $5.25 million. That’s on top of a lucrative stock option package, potential bonuses and other benefits including the use of a corporate jet.

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That’s still short of the pay package taken home by Mulally last year, as he began to wrap up his 8-year stint as Ford CEO, a position from which many credit the former Boeing executive with saving Ford – the only member of the Detroit Big Three not to have gone into bankruptcy or require a federal bailout package.


Ford’s New CEO Mark Fields: A Detour Makes Him a “Better CEO”

A "WTF expression."

by on May.09, 2014

Ford Chairman Bill Ford, left, with Mark Fields, who will become the maker's new CEO on July 1.

Ford CEO-designate Mark Fields is happy to have been tapped by Ford chairman Bill Ford and the Dearborn automaker’s board of directors to succeed CEO Alan Mulally this July. But it wasn’t always so.

The day before Bill Ford announced that Alan Mullaly as CEO on Sept. 5, 2006, word of the Boeing Co. executive’s arrival at Ford was handed out to the senior staff, including Americas President Fields. After the meeting, Fields, who has long had a special relationship with Bill Ford, appeared in the scion’s office door with what Bill Ford described in an interview with me in 2007 as what might be described today as a “WTF expression.”


Fields, then President of the Americas, had already started weaving the narrative in his head that he would, or at least might, succeed Bill Ford as CEO of Ford. The arrival of Mulally, an outsider, was throwing that story off the tracks. “I told him (Fields) very frankly that Alan was going to make him a much better CEO when his time came,” Bill Ford related in an interview with me.


Ford “Core…Remains Strong” Despite Profit Dip

Mulally downplays modest decline.

by on Oct.26, 2011

Ford CEO Mulally with the new Focus ST.

Ford Motor Co. earnings dipped slightly during the third quarter, triggering a modest sell-off by investors despite company assurances that it’s only a temporary setback – CEO Alan Mulally insisting insisting Ford’s “core…remains strong.”

Ford posted earnings of $1.6 billion, or 41 cents per share, for the July – September quarter, a $38 million, or 2 cents per share – dip from year-earlier levels.   The decrease reflected higher raw material prices, the costs of new product launches and a dip in profit margins on new vehicles.

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Even so, chief executive Alan Mulally said Ford continued to strengthen its balance sheet, invest for future growth, as well as take actions to improve its competitiveness

“We delivered solid results for the third quarter despite an uncertain business environment,” Mulally said, arguing that, “The core of our business remains strong.”


Debt Rating on the Rise, Will Ford Restore Dividend?

Maker gets vote of confidence with Fitch credit upgrade.

by on Oct.21, 2011

After an initial bump look for Ford's labor costs to come down, says President Mark Fields.

Editor’s Note: This story has been revised to reflect a subsequent upgrade in Ford’s credit rating by S&P, the agency removing Ford from its CreditWatch.

With a key debt rating agency giving it the thumbs-up – and further hikes anticipated – Ford Motor Co. is signaling it may soon restore its dividend, a move that could, in turn, help revive the maker’s flagging stock price.

With Ford now indicating its new contract with the United Auto Workers Union will actually lower its labor costs, Fitch Ratings bumped the carmaker’s credit rating up a notch to “BB+” on Thursday, S&P taking the same step on Friday while also removing Ford from its CreditWatch.  Those upgrades fall just one step short of reaching the investment grade targeted by Ford CEO Alan Mulally.

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In the past, it had been expected that Ford would wait until getting that investment grade status before restoring the dividend but, during a meeting with investors, Chief Financial Officer Lewis Booth indicated the additional upgrade, “is not an absolute necessity to pay dividends.”

If anything, analysts say such a move would pay big dividends for Ford.  The quarterly payout is a requirement in some investment communities, such as insurance companies and government pension plans, according to Joe Phillippi, chief analyst with AutoTrends Consulting.