jpd80 Posted January 13, 2016 Share Posted January 13, 2016 Nick Bunkley January 12, 2016 - 6:58 pm ET -- UPDATED: 1/12/16 9:06 pm ET -- adds Fields remarks DETROIT -- Ford Motor Co. today said it earned a record pretax profit of at least $10.5 billion in 2015 and that it would match or beat that result in 2016. It also said it would return $1 billion to shareholders in the form of a special 25-cent-per-share dividend, but the news failed to halt a three-month decline in the automaker’s stock price. “As we close out 2015, we are benefiting from six consecutive years of consistently strong results, and our performance is allowing us to reward our shareholders,” Ford CEO Mark Fields said in a statement. Fields, speaking to investors and analysts at a Deutsche Bank conference in Detroit, said Ford’s Board of Directors expects to make special dividends an “ongoing element” of the company’s efforts to reward shareholders. He said the amount may vary and that there may be some years with no extra payout. The dividend brings Ford’s total return to shareholders to $3.5 billion in 2015 and $12.6 billion since 2012. Continued at Autonews.com What an excellent result given the massive changeover with F150 and those lost 90,000 sales, Ill be keen to see how big Ford NA's profit was since it's also covering losses in the rest of the world. I can only imagine what Ford's profit could be with all divisions in the black, Hopefully Ford North America surges again in 2016 and pushes profits even higher. This is what happens when you squeeze plants hard and run your business tight... but Ford also needs to consider how to grow sales the right way and to make even more gravy in the good times. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted January 13, 2016 Share Posted January 13, 2016 Cool more money to buy more F stock with 1 Quote Link to comment Share on other sites More sharing options...
T-bird Posted January 13, 2016 Share Posted January 13, 2016 And yet Ford stock is down 3% so far today. ???? Quote Link to comment Share on other sites More sharing options...
akirby Posted January 13, 2016 Share Posted January 13, 2016 And yet Ford stock is down 3% so far today. ???? There is no logic to short term stock performance. 2 Quote Link to comment Share on other sites More sharing options...
Moosetang Posted January 13, 2016 Share Posted January 13, 2016 There is no logic to short term stock performance. Pretty much. And long-term performance is only barely indicative of anything concrete in regards to a company's health. Today's stock market a really bizzare place. Quote Link to comment Share on other sites More sharing options...
T-bird Posted January 13, 2016 Share Posted January 13, 2016 Pretty much. And long-term performance is only barely indicative of anything concrete in regards to a company's health. Today's stock market a really bizzare place. I guess thats a reason to buy for dividends versus growth. Quote Link to comment Share on other sites More sharing options...
Hugh Posted January 13, 2016 Share Posted January 13, 2016 There is no logic to short term stock performance. I heard this morning that some analysts are saying sell your F Stock. Perhaps a surge in sails may drop the value but it will stabilize eventually. I don't know either I'm just guessing. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 13, 2016 Share Posted January 13, 2016 I heard this morning that some analysts are saying sell your F Stock. Perhaps a surge in sails may drop the value but it will stabilize eventually. I don't know either I'm just guessing. May be time to add some funds to my ROTH so I can buy some of what they are selling... 2 Quote Link to comment Share on other sites More sharing options...
mackinaw Posted January 13, 2016 Share Posted January 13, 2016 Ford stock is down about 5% so far today. One reason for the drop? Their North American profit margin for 2016 is forecasted to be about 9.5%. If it ain't double-digit, your company is considered a failure. Yes, I'm being sarcastic. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted January 13, 2016 Share Posted January 13, 2016 Ford stock is down about 5% so far today. One reason for the drop? Their North American profit margin for 2016 is forecasted to be about 9.5%. If it ain't double-digit, your company is considered a failure. Yes, I'm being sarcastic. The sad thing is, according to the boobs on Wall Street there's a lot of truth to that. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 13, 2016 Share Posted January 13, 2016 And now you understand why making business decisions based on short term stock prices is a recipe for disaster. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 13, 2016 Author Share Posted January 13, 2016 And now you understand why making business decisions based on short term stock prices is a recipe for disaster.yeah, today's Ford management versus the Nasser days when companies were treated like dot come with expectations of high dividends at the expense of the company's long term viability Adding 25 cent dividend will please investors but maybe not speculators..... Quote Link to comment Share on other sites More sharing options...
ice-capades Posted January 13, 2016 Share Posted January 13, 2016 (edited) Ford squeezed extra profits in the past couple of months by increasing the base vehicle invoice price on many models but not increasing the MSRP prices. The end result is a reduction in the vehicle markup and a smaller margin for dealers to work with. Edited January 13, 2016 by ice-capades Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 13, 2016 Share Posted January 13, 2016 Adding 25 cent dividend will please investors but maybe not speculators..... I expect a slight bump (maybe 5 cents) in dividends. Wait, I just saw this tidbit: Ford Motor has decided to keep its base dividend unchanged However, Ford Motor announced a special dividend of $1 billion, or $0.25 per share. The special dividend boosts Ford Motor's common stock cash flow yield to almost 7%. http://seekingalpha.com/article/3808416-ford-motor-the-stock-now-yields-7-percent-should-you-buy Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 14, 2016 Share Posted January 14, 2016 There is no logic to short term stock performance. Ford Stock has been declining for some time now. trading at or near 52 week Lows all year. Why, there is no plan for growth. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 14, 2016 Share Posted January 14, 2016 Ford Stock has been declining for some time now. trading at or near 52 week Lows all year. Why, there is no plan for growth. Why do you have to grow if you're making $10B profit per year now? Why is that not good enough? Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 14, 2016 Share Posted January 14, 2016 Why do you have to grow if you're making $10B profit per year now? Why is that not good enough? investment are based on Future earnings Ford cannot expect to grow Earning without eventually growing Volume. It by the update cadence it appears they are not investing in new products that can grow volume and revenue, no matter the price of Oil. 1 Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 14, 2016 Share Posted January 14, 2016 investment are based on Future earnings Ford cannot expect to grow Earning without eventually growing Volume. It by the update cadence it appears they are not investing in new products that can grow volume and revenue, no matter the price of Oil. Do you truly believe that? $4.5B for electrified vehicles. New or refreshed vehicles just released or coming within 6 months (MKZ, Conti, Fusion, Edge, Escape, Super Duty), new vehicles coming next year (Navigator, Expedition), 4 new SUVs coming. Really? Not investing in new products? Holy shit Biker, are you freaking delusional man? Keep in mind, these are just in the US. Ford is a global market with lots of investment in China that is set to pay dividends with increased sales soon. And I would prefer small incremental growth while increasing ATP and profit per unit over quickly increasing sales at the expense of profit per unit any day. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 14, 2016 Share Posted January 14, 2016 Do you truly believe that? $4.5B for electrified vehicles. New or refreshed vehicles just released or coming within 6 months (MKZ, Conti, Fusion, Edge, Escape, Super Duty), new vehicles coming next year (Navigator, Expedition), 4 new SUVs coming. Really? Not investing in new products? Holy shit Biker, are you freaking delusional man? Keep in mind, these are just in the US. Ford is a global market with lots of investment in China that is set to pay dividends with increased sales soon. And I would prefer small incremental growth while increasing ATP and profit per unit over quickly increasing sales at the expense of profit per unit any day. 4.5 billion for what? where is the money going. Sometime companies put out large numbers just make news, but the reality is they were going to spend the money anyway or they are including spending on non related products too. Either way GM has multiple varaints of their hybrid system, Toyota has an innovative new hybrid system for the RAV-4. While ford essentially has 2 HEVs using one powerpack. that has not delivered the FE numbers expected. and Ford's multi-billion dollar investment doesn't replace the HF35. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted January 14, 2016 Share Posted January 14, 2016 investment are based on Future earnings Ford cannot expect to grow Earning without eventually growing Volume. It by the update cadence it appears they are not investing in new products that can grow volume and revenue, no matter the price of Oil. Biker, I really do look forward to your posts because I think you offer a good counterpoint to the “Ford-can-do-no-wrong” crowd. But there are times you really don’t know what the hell you’re talking about. This is one of them. 2 Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 14, 2016 Share Posted January 14, 2016 4.5 billion for what? where is the money going. Sometime companies put out large numbers just make news, but the reality is they were going to spend the money anyway or they are including spending on non related products too. Either way GM has multiple varaints of their hybrid system, Toyota has an innovative new hybrid system for the RAV-4. While ford essentially has 2 HEVs using one powerpack. that has not delivered the FE numbers expected. and Ford's multi-billion dollar investment doesn't replace the HF35. See the bolded part. You said they were not investing in new products, but here you state that they ARE spending the money! And how do you know what the investment does or does not replace? Quote Link to comment Share on other sites More sharing options...
bzcat Posted January 14, 2016 Share Posted January 14, 2016 (edited) There is a couple of reasons Ford stock took a beating: 1. All stock took a beating. In case you haven't noticed... all sectors are down since the beginning of the year. Large cap, mid cap, small cap, international etc. 2. Ford's growth is mostly happening in China (like every other car company) and China's economy is showing signs of recession. 3. The US market is driving Ford's profit margin but the US market appears to be peaking... hard to imagine sales continue at the pace it did at 2015 without someone opening the incentives spigot. 4. Despite the $4.5 billion investment in EV, Ford hasn't offered any clear indication of how it will enter the market. Other car companies have offered more compelling narratives and outlined product initiatives. Ford is being very quiet on what new EV or PHEV it will bring to market. It's probably deliberate but the perception is that Ford is now lagging behind after it raced ahead with Fusion and C-Max PHEV. 5. No good news in South America and Russia, two regions that Ford had previously counted on delivering some profits. Edited January 14, 2016 by bzcat 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted January 14, 2016 Share Posted January 14, 2016 6. Daytraders and other investors not in it for the long haul Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 14, 2016 Author Share Posted January 14, 2016 Didn't Fields just say that growing revenues and profits are Fords priorities ahead of worrying about boosting the price. More to the question, why is GM continuing to spend cash reserves to buy back stock? What possible reason is there to do that at this time? Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted January 14, 2016 Share Posted January 14, 2016 Didn't Fields just say that growing revenues and profits are Fords priorities ahead of worrying about boosting the price. More to the question, why is GM continuing to spend cash reserves to buy back stock? What possible reason is there to do that at this time? So they can sell it again when things go south 1 Quote Link to comment Share on other sites More sharing options...
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