Tag: Ford

Stoneacre acquires three more Mill Garage sites

The Stoneacre Group has followed up its takeover of Mill Garages’ Sunderland site by acquiring three further outlets in Harrogate, Newcastle and Stockton. The deal sees Stoneacre adding to its portfolio of Volvo outlets. It now oversees 8 sites. “Everyone at Mill Garages is delighted to have joined forces with the fantastic Stoneacre brand,” said… Continue reading Stoneacre acquires three more Mill Garage sites

Danish Bicycle Maker Unveils Electric Car

The Danes aren’t exactly known for their local auto industry, but Danish bicycle maker Biomega aims to change that. The company unveiled an electric car on Monday with intentions to re-envision city travel. The electric car, called the SIN, is meant for urban transport and embodies the company’s idea of affordable and sustainable vehicles. Designers… Continue reading Danish Bicycle Maker Unveils Electric Car

Ford shares jump after strong truck sales help third-quarter results beat expectations

Ford's shift of focus to trucks boosted its profitability, expert says
4:59 PM ET Wed, 24 Oct 2018 | 02:02

Ford shares surged on Wednesday after the automaker reported quarterly earnings and revenue that beat analysts' expectations.

Strong sales of trucks in North America helped offset declining sales of passenger cars, and challenges such as higher costs, lower volume, and difficulties in China. But earnings are still down from the same quarter last year.

Shares were up more than 4 percent in after-hours trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 29 cents, adjusted, vs. 28 cents expectedAutomotive Revenue: $34.7 billion vs. $33.3 billion expected

The results come during a challenging time for the automaker, which is very much in the middle of a turnaround. Shares of Ford have fallen more than 30 percent since the beginning of the year. Materials costs have risen and tariffs have already cost the company at least $1 billion.

Ford said third-quarter net income fell to $1 billion, or 25 cents per share, from $1.6 billion, or 39 cents per share a year earlier. Excluding items, Ford earned 29 cents per share, beating the 28 cents per share expected by analysts surveyed by Refinitiv.

Total revenues rose nearly 3 percent to $37.6 billion. Its automotive revenue was $34.7 billion, ahead of the $33.3 billion analysts were expecting.

The second-largest U.S. automaker continues to benefit from a relentless consumer shift toward sport utility vehicles and trucks in North America, Ford's strongest market. Ford said its F-Series line of full-sized pickup trucks gained market share, and the Super Duty line of trucks saw record high transaction prices.

Ford beats earnings, revenue expectations
4:35 PM ET Wed, 24 Oct 2018 | 01:22

“The shift to trucks is really the driver to profitability and the margins,” said Kelley Blue Book senior managing editor Matt DeLorenzo said on CNBC's Closing Bell. “Ford is pretty well positioned right now with their current product mix. The car decision right now won't hurt them much in the short term. We'll have to see where the market goes in the longer term.”

But it lost market share in every region where it sells vehicles. It continues to struggle internationally, though it lost less money in those markets than it did in the second quarter.

Revenues were up in Europe by about $500 million over the same quarter last year, but were down in South America, the Middle East and Africa, and Asia.

The Ford Credit business had a strong quarter, the company said.

“This quarter shows that our business remains very strong in key areas,” said CEO Jim Hackett. “We continue to make progress on our efforts to redesign Ford to be more competitively fit, disciplined in capital allocations and nimble enough to win in a fast-changing world.”

Ford continues to back its prior forecast, which calls for adjusted full-year earnings of $1.30 to $1.50 per share. It said cash flow for the year will be positive, but lower than it was in 2017.

Previously, the company said it will spend $11 billion on restructuring, but some investors say Ford has not released enough details and is not giving the appearance that it is taking decisive action.For example, the company said on Oct. 5 it plans to make cuts to its salaried workforce of 70,000 people, but it does not yet know how many jobs are at risk and will share more details in the second quarter of 2019.

During a call with analysts, Hackett said he understands the frustration over the lack of clarity, but said Ford has to move cautiously. Although it may not be apparent to those outside the company, Ford has been making progress in formulating a turnaround plan.

Separately, Ford said it expects to continue to pay its regular dividend. Morgan Stanley analyst Adam Jonas recently downgraded the stock from a buy to neutral, and said Ford's cash flow is under pressure and its dividend may be at risk.

“We don't know how we've lost control of the way that has been projected, but we have been consistent, saying that we plan to pay the regular dividend in this five-year plan,” Hackett said.

Ford shares jump more than 8 percent on strong earnings and more details of its turnaround plans

Jeff Kowalsky | AFP | Getty Images
Jim Hackett, president and chief executive officer, Ford Motor stands outside the headquarters as they celebrate the production of the 10,000,000 Mustang on August 8, 2018 in Dearborn, Michigan.

Ford shares were up more than 8 percent Thursday after the company delivered better-than-expected earnings Wednesday night.

Investors seemed encouraged by CEO Jim Hackett's pledge to share more details of his plans to restructure the company and improve efficiency.

Ford is going to host several events in the “coming weeks and months” where it will share more information about Hackett's $11 billion turnaround plans. Hackett has spoken extensively of the need to improve the company's “fitness,” or efficiency, but investors have at times expressed frustration at what they say is a lack of clarity and transparency on Ford's part.

The automaker's shares have fallen roughly 30 percent since the beginning of the year.

“It seems that Mr. Hackett understands that the Street needs more information to gain comfort with his plan, and as such he hinted that there are a number of investor events planned for the near future,” said RBC analyst Joseph Spak in a note published Thursday.

Ford's third-quarter results were solid, despite the fact that some key metrics were down from the same quarter last year, analysts said. Strong sales of trucks in North America helped offset declining sales of passenger cars, higher materials costs and difficulties in China.

“The results really show an enhanced focus on North America, and a focus on trucks and SUVs,” CFRA analyst Garrett Nelson told CNBC. Nelson was surprised the automaker maintained its full-year earnings guidance of $1.30 to $1.50 per share, and said he expects earnings to come in at the low end of that range.

Ford still faces challenges on numerous fronts, including risks from rising materials costs, threats to both supplies and sales from new tariffs, and struggling international businesses.

WATCH:Ford is using bionic suits to help employees work safer

Ford is using bionic suits to help employees work safer
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The auto cycle leaves plenty of room for Ford and GM to continue growing, analysts say

GM has best car lineup and CEO in history: Pro
3:49 PM ET Wed, 31 Oct 2018 | 04:26

There's still plenty of time in the auto cycle, and General Motors and Ford will continue to grow, Tigress Financial Partners CIO Ivan Feinseth said on CNBC Wednesday.

He told “Closing Bell” that at the trough of the auto cycle, the average age of a car is about 11 years old. At the peak, it is about 7 years old. This year, the average age of a car is about 10 years old.

“Auto sales, as far as an upgrade cycle or a necessity purchase cycle, have a long way to go,” Feinseth said.

“You also have people who buy new cars every three years because of the lease cycle, and also one of the biggest motivators of new car purchases is all of the infotainment and collision-avoidance features that are now available in new cars, so I think that the runway still has a ways to go for GM and Ford,” he added.

He said Ford has a lot of room to grow in the luxury market to compete with GM.

“Ford needs some redesign in a number of their vehicles and they need a bigger push in the luxury market,” Feinseth said, noting that Cadillac is the dominant American luxury car brand.

However, he thinks Ford is winning in pickup trucks and sports cars.

As for GM, it “has the best line-up it's ever had as far as vehicles in the company's history. They are led by one of the best CEOs in the company's history, so I think the wind is at their back,” Feinseth added.

Michael Ward, an auto analyst with Williams Research Partners, also thinks the auto cycle will go higher.

“In an environment where the unemployment rate is low, confidence is high, interest rates at an all-time low and income growing, you're not going to have lower car sales,” Ward said on “Power Lunch” Wednesday.

“You might be down 1 percent; that's because the industry is not goosing them up with incentives. I think you're probably going to see industry sales at 17 million units each in the next two or three years, and to me, that's what the market is missing,” he added. “That will enable companies like General Motors and Ford and the suppliers and dealers to generate record profitability.”

He also said electric cars will be key in growth.

“Electrified vehicles include hybrids,” Ward said. “That is where you're going to see the most growth because they can be in trucks, they can be in cars, they can be in every sized vehicle. Fully electric vehicles are still going to be a very small portion of the market, 1-2 percent at most in the next five to 10 years.”

Here's what's driving the growth in GM's North America sales: Analyst
2:54 PM ET Wed, 31 Oct 2018 | 03:37

Commercial Fleet Sales Increased 10.3% in October

Sales into the three fleet segments in October increased 6.8% to 2.29 million. Photo courtesy of Ford, GM, FCA, and Nissan. Sales of vehicles to commercial fleets from eight manufactures increased 10.3% to 54,920 in October compared to a year ago as sales of trucks, vans, and SUVs increased 7% to 48,437 and provided about 89%… Continue reading Commercial Fleet Sales Increased 10.3% in October