Tags: ford | dividend | profit | outlook

Ford to Pay Extra Dividend After Record Profit, 2016 Outlook

Ford to Pay Extra Dividend After Record Profit, 2016 Outlook
(AP photo)

Tuesday, 12 January 2016 06:35 PM

Ford Motor Co., after rolling to a record annual profit, declared a special $1 billion dividend and forecast another good year in 2016 on the strength of a booming North American auto market.

“In 2015, we achieved a breakthrough year,” Chief Executive Officer Mark Fields said in a statement before speaking to investors Tuesday at a Detroit conference sponsored by Deutsche Bank. “For 2016, we’re looking forward to delivering another outstanding year.”

Ford said it will report 2015 pretax operating profit on the high end of its forecast of $10 billion to $11 billion. In 2016, automotive revenue and operating profit margin will be equal to or higher than last year, with a North American margin of 9.5 percent or higher, the company said. Ford will report fourth-quarter and full-year financial results Jan. 28.

Surging sport utility vehicle and pickup sales in the U.S. helped Ford to its highest profit ever in North America through last year’s first nine months. Industrywide U.S. deliveries set a record for the full year, and Ford last week said it expected to report 2015 pretax profit of $10 billion to $11 billion, more than it had forecast.

Despite the upbeat assessment, Ford shares in extended trading fell 3.5 percent to $12.40 at 4:58 p.m. in New York. They closed up 0.6 percent to $12.85 in regular trading.

Ford’s board declared the 25 cents-a-share supplemental dividend as well as the regular, unchanged quarterly payout of 15 cents. Both are payable March 1 to stockholders as of Jan. 29.

‘Strong Results’

“We are benefiting from six consecutive years of consistently strong results, and our performance is allowing us to reward our shareholders,” Fields said in the statement.

Sales of Ford’s F-150 pickup began taking off in 2015’s second half after the automaker spent almost two years converting two factories to build the truck with a lightweight, fuel-saving aluminum body. For the year, F-Series pickup sales rose 3.5 percent to 780,354, making it the top-selling vehicle in the U.S. for the 34th consecutive year.

Ford’s SUV sales climbed 7.8 percent in the U.S. last year as gasoline prices that ended the year at an average $2 a gallon spurred sales. SUVs are generally larger and more profitable that traditional sedans.

Through the first three quarters of 2015, Ford reported profit margins of 7.1 percent worldwide and 10.9 percent for North America.

Ford rose 0.63 percent to close at $12.85 today in New York. Last year, the shares fell 9 percent.


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Ford Motor Co., after rolling to a record annual profit, declared a special $1 billion dividend and forecast another good year in 2016 on the strength of a booming North American auto market.
ford, dividend, profit, outlook
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2016-35-12
Tuesday, 12 January 2016 06:35 PM
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