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rmc523

Ford Q2 profit drops 86% to $148M as it restructures overseas

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https://www.autoblog.com/2019/07/24/ford-reports-lower-profit-than-forecast-as-it-restructures-overseas/

 

Quote

 Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America.

Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion.

On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion.

Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America.

He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers.

Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share.

Its stock fell 6.3% in after-hours trading to $9.68.

 

In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs. But in Europe, the company showed its first year-over-year improvement in two years with a pretax profit of $53 million versus a $73 million loss last year. Ford's loss in China shrank 68% to $155 million. The South America loss widened 15%, though, to $205 million. Middle East and Africa swung to a loss of $45 million from a profit of $49 million.

Ford Credit pretax income rose 29% to $831 million.

 

More at the link above.

Edited by rmc523

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When is Ford going to learn that they have to be in triple digit losses in order to have triple digit stock prices?  148 million profit just is not going to cut it.

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1 hour ago, blwnsmoke said:

When is Ford going to learn that they have to be in triple digit losses in order to have triple digit stock prices? 

Ford already has a triple digit stock price. Two of the digits are after the decimal point.

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3 minutes ago, rperez817 said:

Ford already has a triple digit stock price. Two of the digits are after the decimal point.

And here I am scrambling to get a brokerage account open so I can buy some F,,,,,,,

HRG

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Ford is still going to be on shaky ground stock price wise till late next year. Still have quite a few launches to go through over the next 16 months or so.

  1. Escape/Corsair
  2. Mach E
  3. Super Duty
  4. F-150
  5. Scout/Baby Bronco
  6. Bronco

I'm sure I'm missing one or two. 

 

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25 minutes ago, silvrsvt said:

Ford is still going to be on shaky ground stock price wise till late next year. Still have quite a few launches to go through over the next 16 months or so.

  1. Escape/Corsair
  2. Mach E
  3. Super Duty
  4. F-150
  5. Scout/Baby Bronco
  6. Bronco

I'm sure I'm missing one or two. 

 

7. All-electric Transit

Shaky ground is correct. Ford is struggling mightily to become "fit" again, and transform itself into a true 21st century company. Jim Hackett is doing his best to pull it off. But the next 12-16 months may not be a good time to invest in Ford stock.

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15 minutes ago, rperez817 said:

7. All-electric Transit

Shaky ground is correct. Ford is struggling mightily to become "fit" again, and transform itself into a true 21st century company. Jim Hackett is doing his best to pull it off. But the next 12-16 months may not be a good time to invest in Ford stock.

It’s actually the best time but very few will buy stock when it’s falling. The smart money knows that a lot of the costs are one time charges and that the US product pipeline is full next year. Europe has started to turn around profit wise and losses in South America are slowing.

Edited by jpd80

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12 hours ago, rperez817 said:

7. All-electric Transit

Shaky ground is correct. Ford is struggling mightily to become "fit" again, and transform itself into a true 21st century company. Jim Hackett is doing his best to pull it off. But the next 12-16 months may not be a good time to invest in Ford stock.

Typically, once a company becomes recognized by mainstream analysts as "fit" for investing the big run-up in stock price has already taken place. I've made two purchases so far. One in December when the dividend was at nearly 8%, another earlier this year when it was around 7%.  With it now back up to 6.28% I'm considering a third.

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(That said, there's a good chance that even if all goes well with Hackett's Ford plan it might be necessary to hold onto the stock for a couple or more years to get the full benefit out of it, depending on the timing of the next recession. This is still a cyclical industry. But holding on at this dividend level takes some of the sting out of it, assuming the dividend remains safe.)

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45 minutes ago, fordmantpw said:

Seemed like a great time to reinvest my dividend into more shares of F, so I did just that today.

I still need to get to doing this haha.

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22 hours ago, silvrsvt said:

Ford is still going to be on shaky ground stock price wise till late next year. Still have quite a few launches to go through over the next 16 months or so.

  1. Escape/Corsair
  2. Mach E
  3. Super Duty
  4. F-150
  5. Scout/Baby Bronco
  6. Bronco

I'm sure I'm missing one or two. 

 

Aviator

Puma

Mondeo Cross

P758 small pickup

Bronco Pickup

 

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3 hours ago, RadicalX said:

Mondeo Cross

P758 small pickup

Bronco Pickup

Those aren't coming in the next 16 months though. The Puma and Aviator have more or less launched and I was thinking US centric

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On 7/25/2019 at 7:27 PM, silvrsvt said:

Ford is still going to be on shaky ground stock price wise till late next year. Still have quite a few launches to go through over the next 16 months or so.

  1. Escape/Corsair
  2. Mach E
  3. Super Duty
  4. F-150
  5. Scout/Baby Bronco
  6. Bronco

I'm sure I'm missing one or two. 

 

And that is just in the US.

It doesn't include the Puma in Europe, Territory in Argentina, EcoSport in India, small Lincoln crossover in China, etc.

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On 7/27/2019 at 10:32 AM, ausrutherford said:

It doesn't include the Puma in Europe, Territory in Argentina, EcoSport in India, small Lincoln crossover in China, etc.

Any news on Territory in Argentina?

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On 7/25/2019 at 7:01 PM, rperez817 said:

7. All-electric Transit

Shaky ground is correct. Ford is struggling mightily to become "fit" again, and transform itself into a true 21st century company. Jim Hackett is doing his best to pull it off. But the next 12-16 months may not be a good time to invest in Ford stock.

Unless you like high dividend paying stocks, which F is. I’m not concerned at this point that they’ll cut the dividend at all or by any significant amount.

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1 hour ago, Chromey said:

Unless you like high dividend paying stocks, which F is. I’m not concerned at this point that they’ll cut the dividend at all or by any significant amount.

I really don't give two shits. I'm looking long term (10-15+ years) with my F stock. I just wish I bought it back in 2007 when it was under $2 a share. 

if you want short or mid term returns, find a different stock...

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On 8/1/2019 at 7:24 AM, Chromey said:

Unless you like high dividend paying stocks, which F is. I’m not concerned at this point that they’ll cut the dividend at all or by any significant amount.

I think it's a good play as a current income stock and as a long-term value stock.

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On 8/6/2019 at 4:18 PM, SodiumMonkey said:

I think it's a good play as a current income stock and as a long-term value stock.

picked up 2K of F today,,,,

HRG

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