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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…)

Ford Shares Plunge on Bad News About Recalls, Europe

But maker insists it is “well-positioned for long-term.”

by on Sep.30, 2014

Ford CEO Mark Fields, shown with the 2015 Edge, insists the maker's long-term prospects are solid.

Investors took a dim view after being given an inside look at Ford Motor Co, the maker acknowledging that its European turnaround will be delayed, while it expects to run up big losses in South America, as well – with earnings taking taking another $500 million hit due to recent recalls.

Ford shares closed Monday at $15.11, down about 7.5% on nearly three times the normal volume on the New York Stock Exchange, investors having to balance the maker’s short-term problems against the more upbeat, long-term potential outlined by new Ford CEO mark Fields and his top management team.

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“Our long-term plan underscores the commitment we have to our One Ford plan, while accelerating our pace of progress, delivering product excellence and driving innovation in all areas of our business,” Fields said during a presentation to automotive analysts dubbed Ford 2020. “We remain completely focused on offering customers the freshest lineup of world-class vehicles to meet their needs.”

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Ford Posts $1.3 Billion Profit in 2Q

Strong North American sales bolsters quarterly results.

by on Jul.24, 2014

Ford reported net income of $1.3 billion for the second quarter this year. Much of that came from strong results in North America.

Ford Motor Co. posted net income of $1.3 billion in the second quarter due in large measure to strong results in North America. Additionally, the company turned a profit in Europe for the first time in three year and Asia Pacific sales remained strong.

However, South America continues to be a drag on the company’s results. Ford Chief Executive Officer Mark Fields said the company had a very good second quarter and the company was looking forward to a series of major launches not only in North America but also in Europe.

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“To put in perspective, we are in a growth mode,” Fields said during a conference call with reporters and analysts. (more…)

Ford Spending $1.8 Billion on Stock Buyback

Repurchases aimed at offsetting share dilution.

by on May.08, 2014

Ford plans to spend $1.8 billion to repurchase 116 million shares of stock to offset share dilution.

Ford Motor Co. plans to spend $1.8 billion as part of a plan to buy back 116 million shares of stock. The repurchase plan is aimed at offsetting potential dilution of the stock.

“These actions are consistent with our overall capital strategy to take anti-dilutive actions and position ourselves to further reduce automotive debt,” said Bob Shanks, Ford’s chief financial officer, in a statement.

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The combined share repurchases will reduce diluted shares by about 3%, the company said. (more…)

Atlas Concept Truck a Pick-Up for Ford Stock

Unexpected unveiling offers a hint of replacement for best-selling F-Series.

by on Jan.15, 2013

The surprise debut of the Ford Atlas concept pickup.

Ford Motor Co. stock took a sharp jump following the automaker’s unexpected unveiling of the Atlas Concept truck, a prototype offering a hint of what’s to come when the maker replaces its best-selling F-Series pickup in 2014.

In an appearance to an industry conference coinciding with the North American International Auto Show, Ford CEO Alan Mullaly marveled at the reaction to the preview.  The unveiling of the Atlas had been whispered about but unconfirmed by the maker until the huge silver truck descended from the ceiling of Detroit’s Joe Louis Arena.

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“How about that,” proclaimed Mulally in an off-the-cuff remark following  his speech to the Automotive News World Congress. By the time the NY Stock Exchange closed, Ford common was up 31 cents, or 2.22%, for the day, to $14.30.

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Ford Doubling Quarterly Dividend

Maker hopes to improve share price, debt rating.

by on Jan.10, 2013

Ford is shining a little brighter in investors' eyes.

Ford Motor Co. will take another critical step in its recovery by doubling its shareholder dividend, the maker today announced.  Stockholders of record on January 30, 2013 will receive a 10-cent payout.

The move comes as the maker prepares to announce strong earnings for the final quarter of 2012 – and as its profit margin climbs to an all-time record level. Ford officials are clearly hoping to give a much-needed boost to the company’s stock price, which only recently began gaining momentum after more than a year in the doldrums.

The move also reflects growing optimism among analysts and ratings agencies, several of which recently bumped Ford debt up to investment grade after a decade in junk bond territory.

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“Our ability to double our dividend in one year is a testament to our One Ford plan, which has enabled us to maintain a solid balance sheet, while at the same time growing our business to provide our shareholders with more return on their investments,” said Bob Shanks, chief financial officer, Ford Motor Company.

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With 2nd Debt Upgrade Ford Regains Control of Blue Oval Logo

Maker regains control of logo, brands and factories.

by on May.23, 2012

Back from the pawnbrokers: Ford regains control of the Blue Oval logo and other key assets.

Ford is out of hock, so to speak.  With Moody’s Investor’s Services upgrading the maker’s debt to “investment grade,” the second-largest automaker has done more than just fulfill the key goal of CEO Alan Mulally.  It regains control of assets that include its factories, brand names and trademarks and the familiar Blue Oval logo.

While Ford continued to use them it put those and other assets up as collateral in 2006 to secure $23.5 billion in credit.  That move, approved shortly after Mulally joined Ford from Boeing, where he had been a senior executive, helped the maker avoid the bankruptcy that nearly crushed its cross-town rivals General Motors and Chrysler.

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“The key factor in our considering an investment grade rating for Ford was whether or not the company would be able to sustain its strong performance,” said Moody’s senior vice president Bruce Clark. “We concluded that the improvements Ford has made are likely to be lasting.”

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Junk No More, Ford Regains Its Investment Grade Rating

Fitch moves, but will S&P and Moody’s follow?

by on Apr.24, 2012

Ford CEO Alan Mulally gets one of his wishes fulfilled.

Ford Motor Co. CEO Alan Mulally has reason to celebrate after achieving one of the top goals he set after joining the Detroit automaker more than five years ago; Fitch Ratings boosting the maker’s debt to investment grade status.

Though several other key ratings agencies have yet to weigh in, the move by Fitch signals growing confidence that Ford’s turnaround is sustainable – and helps the maker maintain momentum by, among other things, reducing its debt costs.  It is also expected to boost Ford’s standing in the stock market, the upgrade quickly triggering a sharp jump in Ford’s share price.

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“We are very pleased with today’s decision by Fitch,” said Bob Shanks, Ford’s Chief Financial Officer.  “It is an important proof point of the continued progress the Ford team is making with our One Ford plan.  Moving forward, we will continue to focus on driving profitable growth for all of our stakeholders. In fact, our One Ford plan includes achieving strong investment grade ratings and maintaining investment grade throughout an economic cycle.”

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Ford Reinstates Dividend

Big payout for CEO Mulally and Ford family.

by on Dec.08, 2011

Ford CEO Alan Mulally will get a big payout now that Ford is restarting its dividend payments.

Investors are showing a restrained reaction to word that Ford Motor Co. will restore its dividend for the first time in five years – a less than desirable outcome for the automaker’s senior management team who’d hoped that the nickel-a-share dividend would help drive up the Ford stock price.

With 4 billion shares of stock outstanding, the restoration of the Ford dividend is a nonetheless significant increase in its quarterly costs, totaling about $800 million annually, or $200 million every three months.  Nonetheless, Ford officials have expressed hope, in recent months, that the restoration of the dividend would be a critical step in their goal of both boosting the maker’s stock – and helping it regain a much-sought investment grade credit rating.

“We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” Executive Chairman Bill Ford said in a press release announcing the dividend payment, which will be issued next March 1.

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The great-grandson of company founder Henry Ford, the automaker’s CEO will pocket $736,500 per quarter for his 14.73 million shares of Ford Motor stock.  That’s on top of the additional dividend he gets for the special Class B shares he and other family members own exclusively.  The Ford family collectively get $979,000 a quarter for that stock, which is already paying a dividend.  CEO Mulally, meanwhile, will get $875,000 for the 17.25 million shares of common stock he currently holds.

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One Year Later GM Stock on a Sharp Decline

Share price barely half initial expectations.

by on Nov.15, 2011

Despite recent earnings GM stock is getting hammered by investors.

A year after it made its return to public trading, General Motors’ stock is being hammered by investors, the market driving shares of the once-bankrupt automaker down by a third of what it debuted at in November 2010.

GM shares have fallen sharply in recent weeks, though it has rebounded slightly this week, but at around $22 a share the stock is still off by nearly a third from its IPO price – and down by more than 40% from its 52-week peak.

“What we are looking at is an increasingly challenged economic environment going forward with a lot of uncertainty,” GM Chief Financial Officer Dan Ammann said after the maker announced a $1.7 billion profit for the third quarter of 2011.

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GM is solidly back in the black after rolling up tens of billions in losses during the years leading up to its 2009 filing for Chapter 11 protection – from which it emerged only after lining up roughly $50 billion in federal aid.  The company says it ended the most recent quarter with $33 billion in cash and nearly $6 billion more in credit lines.  It has meanwhile seen its share of the global automotive market climb to 11.9%, up from 11.4% a year ago.

So, what’s not to like?

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