Financial Results – Page 8390 – I wish I had more to offer

Isuzu PH to Stop Local Isuzu D-Max Production – Yahoo News

“The actual number of CKDs in PH is going down,” said IPC Sales Division head Joseph Bautista. “We don’t have enough economy of scale.” Aside from the discontinued assembly, IPC has also withdrawn the Isuzu D-Max from the government’s Motor Vehicle Development Program, “with the last CKD production sometime in July this year.” Currently, the… Continue reading Isuzu PH to Stop Local Isuzu D-Max Production – Yahoo News

Fisker aims to offer $40,000 EV by 2021 – Automotive News Europe

Henrik Fisker wants the company that carries his family name to offer a high-volume, “more affordable” full-electric model that will sold globally by 2021. The former BMW and Aston Martin designer, who had a bumpy ride when his previous company, Fisker Automotive, entered the EV sector in 2011 with the Karma, is bullish about the… Continue reading Fisker aims to offer $40,000 EV by 2021 – Automotive News Europe

Ford misses profit estimates as pension and layoff costs erode earnings

Daniel Acker | Bloomberg | Getty Images
A Ford Motor Co. Explorer Hybrid sports utility vehicle (SUV) is displayed during the 2019 North American International Auto Show (NAIAS) in Detroit, Michigan, U.S., on Monday, Jan. 14, 2019.

Ford's reorganization plans showed up in its fourth-quarter earnings Wednesday as pension and layoff costs eroded the company's profit and caused it to miss earnings estimates — despite posting stronger-than-expected sales.

The Detroit automaker has been struggling overseas, and that was apparent in the fourth quarter. While Ford grew its revenue in North America by $1.7 billion, it fell in every other region across the globe. It lost market share in every major market in South America except Peru. Unfavorable exchange rates and a drop in sales volume also hurt Ford's bottom line, especially in Europe and Asia.

Ford also said it faced financial headwinds of $750 million from tariffs, another $1.1 billion from commodities costs, $750 million in unfavorable foreign exchange, and $775 million related to recalls announced last year in North America, said Ford Chief Financial Officer Bob Shanks on a conference call after the automaker released results.

Here's how the company did compared with what Wall Street expected, based on average estimates compiled by Refinitiv:

— Adjusted earnings per share of 30 cents vs. a forecast of 32 cents per share

— Automotive segment revenue: $38.7 billion vs. a forecast of $36.88 billion

Ford took a $1.18 billion charge for “special items” that were excluded from its adjusted earnings. The charges stem mostly from pension and layoff costs. On an unadjusted basis, Ford lost $116 million, or 3 cents a share, during the fourth quarter. It generated a profit of $2.52 billion, or 63 cents per share, a year earlier.

The company's total revenue was $41.8 billion during the quarter, slightly higher than its $41.3 billion in revenue during the same quarter last year.

“While 2018 was a challenging year, we put in place key building blocks to build a more resilient and competitive business model that can thrive no matter the economic environment,” Shanks said in a statement.

Despite the losses, Ford expects to be able to fully fund its business and capital needs in 2019, while keeping cash and liquidity at or above target levels, Shanks said.

On an adjusted basis, the company earned 30 cents a share, which missed analyst expectations of 32 cents per share, according to analysts surveyed by Refinitiv. It was also less than the 39 cents a share the company reported in the same quarter of 2017.

Ford's shares have been under pressure all year, tumbling by about 22 percent over the last 12 month, closing at $8.34 a share Wednesday.

The automaker is undergoing an $11 billion restructuring plan that has so far involved trimming back international operations, making investments in new mobility technologies, and realigning its portfolio around more profitable vehicles.

That strategy includes doubling down on segments where Ford has historically been strongest — trucks, utilities, and muscle cars. The automaker unveiled a refreshed version of its best-selling Explorer sport utility vehicle at the Detroit auto show and is also broadening its Mustang lineup.

Ford also said it is partnering with German automaker Volkswagen on a number of initiatives, shortly after announcing job cuts across its European operations. The first agreement the two firms signed appeared to benefit VW more than Ford, said Jeffries analyst Philippe Houchois. But it allows Ford to remain in its most profitable businesses in Europe while cutting costs and pulling out of areas where it is failing.

“The issue that Ford has had around the world is that everywhere they operate, Ford's business is a mix of good and bad,” Houchois said in an interview Tuesday. Ford's position in Europe is different from that of rival General Motors, which decided nothing in Europe was worth salvaging when it sold its operations in the region to French automaker Groupe PSA.

“For Ford it is more complicated,” Houchois said. Ford's commercial van business is significantly smaller than its F-150 pickup truck franchise, but it's probably the company's second-most profitable product and its market share in Europe is key. “So they can't just pull out of Europe. They have to find ways of being sustainable there, which is more complicated, but could have some benefit long term.”

The company is holding a conference call with CEO Jim Hackett and other executives at 5:30 p.m. ET to discuss the results.

This story is breaking news. Please check back for updates.

Pensions, one-time charges push Ford to fourth-quarter loss

DETROIT, Jan 23 (Reuters) – Ford Motor Co on Wednesday posted a fourth-quarter loss, which it attributed partly to one-time charges, including pension-related costs. The No. 2 U.S. automaker posted a loss of $116 million or 3 cents a share, down from a net profit of $2.5 billion or 63 cents a share in the… Continue reading Pensions, one-time charges push Ford to fourth-quarter loss

Ford Details Commitment to Global Redesign — Reshaping Overseas Operations and Strengthening North America

Ford reshaping company to lead the future of transportation and mobility Company strategy centers on high-growth product segments, electrified propulsion, autonomous vehicles, mobility services, operational fitness and high-performance culture Global wave of new products in fastest growing and most profitable segments, with more than 20 new Ford and Lincoln products in North America over the… Continue reading Ford Details Commitment to Global Redesign — Reshaping Overseas Operations and Strengthening North America

Ford Surpasses 1 Million Truck Sales in 2018

Ford extended its market dominance in trucks again in 2018 with more than 1.075 million F-Series sold globally Using average U.S. transaction pricing of $46,700, F-Series estimated sales revenue of $50 billion would be greater than the 2018 revenues of Fortune 500 companies including Oracle, American Express or Best Buy DEARBORN, Mich., Jan. 12, 2019… Continue reading Ford Surpasses 1 Million Truck Sales in 2018

UPDATE 4-Subaru halts bulk of global car output over part defect

TOKYO (Reuters) – Subaru Corp (7270.T) said its sole car factory in Japan, accounting for roughly 60 percent of global production, could be out of action for almost two weeks after it discovered a suspected defect in a power-steering component. FILE PHOTO – The Subaru logo is displayed at the North American International Auto Show… Continue reading UPDATE 4-Subaru halts bulk of global car output over part defect

Why car groups Nissan and Renault need each other

When Nissan’s chief executive Hiroto Saikawa addressed employees shortly after the arrest and dismissal of Carlos Ghosn in November, he painted a bleak picture of a company that had suddenly lost its captain. It is a sharp contrast with the early days of Mr Ghosn’s leadership, when he achieved a rare turnround of Nissan from near… Continue reading Why car groups Nissan and Renault need each other

Elon’s Latest Letter Sends Shock Waves Through Wall Street

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Published on January 20th, 2019 |

by Steve Hanley

Elon’s Latest Letter Sends Shock Waves Through Wall Street

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January 20th, 2019 by Steve Hanley

As Tesla was going through “production hell” with the Model 3 last year, Elon Musk tweeted that he had underestimated the value of human workers. The Model 3 assembly line was the most highly automated in the world, but many of the machines were not calibrated properly or broke down, leading to slowdowns. Tesla responded by hiring more workers, expanding its workforce by about 30%.

On January 18, the company announced it is laying off about 7% of its full-time workers and warned that profits in the fourth quarter would be lower than in the previous quarter. Q3 saw a modest profit for the company of just under 4%. For Q4, Elon says the company once again will be profitable but that profit will be lower than in Q3. And for Q1 2019, Tesla might see a “tiny” profit. The actual Q4 numbers won’t be released officially until the next shareholder and analyst conference call in early February. (In the meantime, if you’re interested, Vijay has published his estimates.)

Musk justified the decision to lay off about 3,000 workers by saying the company needs to find ways to reduce the cost of its cars. “Looking ahead at our mission of accelerating the advent of sustainable transport and energy, which is important for all life on Earth, we face an extremely difficult challenge: making our cars, batteries and solar products cost-competitive with fossil fuels.

“While we have made great progress, our products are still too expensive for most people. Tesla has only been producing cars for about a decade and we’re up against massive, entrenched competitors. The net effect is that Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products.

“[T]he road ahead is very difficult. This is not new for us — we have always faced significant challenges — but it is the reality we face. There are many companies that can offer a better work-life balance, because they are larger and more mature or in industries that are not so voraciously competitive. Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause.

“Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way.”

The news sent Tesla stock into free fall, shedding 13% during the trading day on Friday and knocking Tesla down a few notches on the list of most valuable automakers — from #4 to #7.

And, of course, it brought the usual assortment of “I told you years ago Tesla would never amount to anything” naysayers on Wall Street. One of them is Forbes contributor Jim Collins, who wrote that going backwards on quarterly profits is exactly the opposite of what investors want to hear.

“That margin decrement would indicate that the benefits of scale are not occurring at all at Tesla, and that is a virtual death blow to the bullish arguments for the stock. Auto companies are generally perceived to have some monstrously large mass of fixed costs that can be amortized over production, and thus more output should equal both higher dollar profits and higher profit margins.” (Collins ignored what anyone following Tesla very closely knew — Tesla sold a large number of very high-cost, high-margin versions of the Model 3 in the 3rd quarter, and then many of the more affordable Model 3 Mid Range in the 4th quarter.)

Bret Kenwell, writing for The Street, worried that the decline in share price would make it difficult for Tesla to pay off the $920 million in convertible bonds coming due on March 1. “In the third quarter, Tesla was cash-flow positive and profitable, and so long as that’s the case in the fourth quarter, Tesla should be able to make the payment in March, even if it is all cash. However, it will come at an unfortunate time for Tesla, as it tries to get its Shanghai factory open before the end of the year, continues to expand its Supercharger Network and has a number of new models in the pipeline.”

Tesla has been doing a high-wire act for the past 15 years. Many analysts and journalists were claiming Tesla’s imminent death 10 years ago. Its stock is one of the most volatile and always has been. Chances are, it will continue to be. The conversion price for those convertible bonds is $359.88. “[I]t’s always possible that Tesla stock will be able to rally above that conversion price in time to pay part of the debt with stock. After all, it’s more than a month away and we’ve seen crazier things than a 20% rally in Tesla’s share price in a short time period,” Kenwell writes.

What it all comes down to is, do you trust Elon Musk or not? Some very large investors — like Tencent, Baillie Gifford, Ron Baron, and Larry Ellison — have placed bets on Elon and Tesla. Perhaps jittery stockholders should pay more attention to what the company’s major investors are saying rather than the words of a few so-called analysts who get paid to stir the pot.

As Elon says, the road ahead will be difficult. The 3,000 people getting laid off can’t be very happy about being out of work. Despite the pressure and difficult working conditions, Tesla is still viewed as one of the best places to work in the industry. The bottom line is that Musk knows his overall plan relies on making electric cars that more people can afford. That’s good news for the electric car revolution going forward but the path will not always be smooth.

About the Author

Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may lead him. His motto is, “Life is not measured by how many breaths we take but by the number of moments that take our breath away!” You can follow him on Google + and on Twitter.

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Tesla Rolls Back Supercharger Price Increases To Appease Owners

4 H BY STEVEN LOVEDAY The customer is always right. Many people praise Tesla for caring about its customers and listening to their feedback. Just last week, we reported that the Silicon Valley electric automaker substantially raised prices for Supercharging globally. The car maker is clearly struggling to continue to show a profit. Moreover, Tesla needs… Continue reading Tesla Rolls Back Supercharger Price Increases To Appease Owners