Ford Motor’s Executive Gets a Hefty Pay Check For Delivering Record Profits

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Due the tenure of the CEO and President of Ford Motors, the company has reported record breaking profits hence receiving a huge pay check for his performance.

Due to his incredible performance this year, Ford Motor Company’s CEO Mark Fields has been rewarded with a huge paycheck. From the previous year, Mr. Field’s compensation for the year has been bumped up by 17% as he delivered record profits this year.

As the company’s top executive, Mark Fields had received approximately $17.3 million after adjusting his pension value for his first full year as an executive. During the year, the automobile giant managed to report best profits mainly due to the increasing sales of its sport utility vehicles (SUVs). Inclusive of pension value, as per a recent SEC filing, the CEO was rewarded with a total of $18.6 million which included $1.75 million in salary, over $13.36 in stock options along with performance based equity incentive; along with a bonus of $3.46 million while the rest was pension value.

Mark Fields was appointed at the CEO and President of the auto-maker back in July 2014; ever since his admission into the organization, it has seen increased profits and improvement in Ford’s operations. Last year’s major cash cow was the company’s aluminum-bodied F-150 pickup which was redesigned by him and was praised for that improvement as well.

In addition to that, due to the declining fuel prices in the market, Mr. Fields also rolled out more SUVs into the market which ultimately improved the automobile organization’s top and bottom line numbers. With all this positivity that has been witnessed by analysts and investors so far many now believe that this might not last for long. As the specific auto industry might hit a peak and hence reach to a saturation point due to which the margins will feel the pressure.

On the contrary, the CEO also agrees with this notion, and during a conference held in January he stated that the company’s North American operating profits margin are likely to witness a decline this year; which is the country’s largest market. This decline in the market is likely to lead to an overall performance decline in the earnings.

Furthermore, according to a proxy report, the executive reported that the top team is to make sure they achieve 99% of the goals that are to be set by the board. In pre-tax earnings, the company posted $10.8 billion which is the record breaking profit of fiscal year 2015. Additionally, during Mark’s tenure the automaker managed to sell as many as 780,354 units of its F Series pickup trucks. All these units were sold in the United States which for the 34th consecutive time made Ford Motors the best-selling vehicle.

 

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Ford Motors To Launch Four All-New SUVs in the Next Four Years

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The auto-maker plans to target the market that want to purchase SUVs.

Earlier on Thursday, the automobile company Ford Motors made an announcement according to which the company mentioned its plans of launching all-new four SUVs in a time span of 48 months. The auto-maker plans to do so because of the growing global demand and popularity of SUVs and crossovers. The official news will be made at the Chicago Auto Show by the Vice President of Sales and Marketing, Mark LaNeve.

As per the news announced by the automobile manufacturer, it will be designing four new SUVs and produce them in the time period mentioned above – and these automobiles will be aimed to fill the gap in the market where it has not yet introduced its products. Additionally, these new products will be a part of a global plan made by the organization; however they have yet to announce where and when these vehicles will be launched.

It is possible that these new SUVs and crossover might be made a part of the organization’s mainstream Lincoln or Ford Brand. It is also likely that these cars make their debut in Europe, Asia, United States and/or South America. According to a statement by the Blue Oval, the company does not plan to remove any of its models from its product line.

Presently, the demand for SUVs is quite high and that is what all the auto-maker companies in the industry have been working on – additionally this demand for SUVs had caused numerous auto-makers to think that it would be better if they working on shifting their focus towards introducing more SUVs in the market instead of passenger cars or Sedans.

The major reason as to why the Detroit based automobile maker has made its shift into the SUV market is because these vehicles are more fuel efficient and given that the gas prices are at a low currently, it encourages a number of customers to go for SUVs instead of other cars. Additionally, the company conducted a research according to which it stated that once the younger generation moves towards starting a family in the upcoming years, they would want to purchase convenient vehicles and hence the sales of SUVs will increase significantly. These automobiles have become the starting point for a number of families now.

Furthermore, Ford recently announced its fourth quarter earnings which were much better than the Wall Street had projected it to post. According to the report, the company has given guidance for 2016 as well; according to which the profit margins in North America might not be same as they were in the previous year at 10.2%; mainly because the Ford stock dropped to $11.70 during the last week of the first month. This drop in the share price was of 1.2% however the company earned 50 cents on each share. The analyst at Wall Street had expected the company to report EPS of 51 cents.

Majority of these earnings per generated in the fourth quarter of the previous year amidst the declining oil prices. Presently, the stock is being traded at 11.17 at a discount of 1.50%.

Ford Motors 4QFY15 Financial Results Beat Analyst’s Forecast

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The automaker managed to outperform all the estimations of the analysts for the fourth quarter; safe to say it had an incredible 2015 – at least in Europe, Asian and North America.

Earnings report of Ford Motors Company for the fourth quarter of fiscal year 2015 was announced on January 28, 2015 – turns out the quarterly results are way better than the expectations of the automaker as well as the expectations of the analyst at Wall Street.

During the fourth quarter, the automaker managed to generate a hefty amount of $1.9 billion as net income, bringing the total net income for the year to $7.4 billion. The Wall Street analysts had estimated the earnings per share of Ford will be $0.46 where it managed to outperform their estimations and reported earnings of $0.58 per share.

Secondly, it beat the revenue expectations of the financial analysts as well, since they predicted that the company will see the revenue jump to $36.32 billion while it reported revenue of $40.3 billion. Before taxes, the automobile organization earned as much as $2.03 billion in North America. Across the market, Ford is one of the companies that had an outstanding year.

Mark Fields, the chief executive officer at Ford Motors stated that this earnings report is a reflection of all the big new products that made its debut back in 2014 – for example, the Edge and Explorer SUV’s have started to report a hefty amount in sales since the past few months. He added that the operating margin in the region for the year was about 10.2% while for the quarter it was reported to be 8.2%.

It was partially predicted that the auto-maker will post outstanding financial results for the fourth quarter, mainly because Mark stated earlier in January that the organizations was planning on modifying its pension reporting pattern – because of this change, the company was expected to gain as much as $1.5 billion before taxes.

Additionally, in the European market the Detroit based giant has made its recovery as it succeeded to earn $131 million before taxes for the quarter and for the entire year earned $259 million. A year ago, during the same period its market share in the European region was 7% and now it is at 7.6% – which is the first profitable year in the region since 2011. The reason for this recovery is the strong product line and new products provided by the automobile business which helped it gain new customers.

Subsequently, Europe is not the only region that performed well this quarter; the Asia Pacific unit did fairly well too – as it reported earnings of $444 million   which brought it to a total of $765 million for the year. In the Asian region, the Edge SUV has become a hot seller and a major factor for the unit’s good financial results.

With all the good results that the company has reported from all across the globe, South America was the only region that has a tough time reporting profits. The unit incurred a loss of $187 million during the fourth quarter. Due to the slow growth and fall sales of the industry, Ford witnessed this loss. For the upcoming fiscal year, the organization is planning on beating the results of the previous year – for the North American region, its expecting to be close to the current year’s results along with good results in Europe as well as Asia.

Ford Motors Has Received Approval From California State Authority For Its Self-driving Cars

Ford Motors Has Received Approval From California State Authority For Its Self-driving Cars

The automobile giant is now not only in competition with other automobile companies but also technology companies as self-driving cars come into existence.

In year 2016, Ford Motor can officially begin testing their self-driving cars on the roads of California. The self-driving vehicle by the automobile company is Ford Fusion Hybrid, which is all set for a test drive on the roads of the country. Currently, the automobile has already been tested in Michigan and Arizona; with the help of structured road infrastructure the cars will be better able to deal with traffic and changing road conditions.

According to Ford news, the automobile corporation has planned to test a number of Hybrid cars on the roads of California, which most likely will be tested on pre-planned routes. These routes could include highways and city streets. As per the reports, provided by the company, the vehicles will be guided by 3-D map technology. Legislation has been passed by the California state Authority to allow the use of self-driving cars on the roads of the cities. A number of company’s cars have been seen on the Golden Gate roadway including those of Alphabet, Inc. and Volkswagen.

Along with these automobile and tech companies, many other manufacturers have also received approval for using autonomous cars technology on the roads. Some of the companies are Tesla Motors, Honda Motors, etc. most of which will start selling these self-driving vehicles by 2020.

In January, the automobile giant established a research and innovation center in California and hired more than 100 employees who were researches and engineers to work on innovative technology which puts it in an ideal position to establish partnerships with various Silicon Valley based tech companies. Along with targeting tech giants, the automobile company is also making efforts to develop relationships with various universities.

In 2016, Ford Corporation is planning on establishing relationships with Stanford University. Together they plan to work on over 13 projects mainly focusing on resolving technical issues in automated driving. Another program that both the company and university will be working on is the Smart Mobility project which will revolve around building internet connectivity for driverless cars and car-sharing.

At this point, it is not just automobile corporations that are competing with one another but automobile companies are now in competition with technology companies such as Uber, Google and Baidu Inc. The automobile industry right now needs to focus on developing expertise in digital technology because the future will mostly be about driverless cars with internet connectivity.

As for the rivals, Google’s autonomous cars have been tested in a number of different states completing 1.3 million miles. Currently, these vehicles drive are 25 miles per hour.

 

Fords Announces Increment in Labor Costs

Fords Announces Increment in Labor Costs

Ford has revised its agreement with the union to increase labor costs in the next four years.

Fords Motors has signed a deal with the United Auto Workers union that has raised eyebrows of rivals in the auto industry. According to the deal, the giant is expected to report an increment in the labor costs that it pays to the union and the rise is to come around 1.5% by the end of the contract, which is based on four years, ending in 2019. It is believed that the labor wages paid by the other companies, including the organization currently, are much less and do not seem to rise anytime soon. However, this has now changed with the emergence of this new deal.

Fords management, with the help of this deal, has turned down the previously run two-tier wages program that was followed for the laborers of the auto company. According to news, it looks like the smart carmaker will be increasing its costs of labor from $57 per hour to an estimated $60 effective by the year 2019. This, as per Bob Shanks’ belief, who is also the CFO of the company, is exactly how the car manufacturer planned its objectives to be. This increment in the wages has turned out to not only surprise rivals in the auto making industry but it has also raised concerns, as to where the giant could be headed with such an expensive payment plan to follow.

Reports have informed that Fords business has decided to spend a massive $600 million in bonuses it provides to its customers in the current fiscal quarter, whereas the other bonuses for employees encompass a monetary value of $500 per person. In order to deal with the excessive wage payment plan, it has been informed that the giant will be working towards getting temporary labors instead of full time ones, so that the cost can then be saved. These temporary employees will also be hired than on a lower payment plan.

On November 20, 51.5% Ford’s union workers signed the agreement presented by UAW, which was also backed up by positive comments from Marks Fields, the CEO of the hybrid car manufacturers. As per a statement by Fields, the agreement has been deemed as an important step towards the company reaching out to its long-term priorities in an effective way, which is exactly how he wishes the giant to go forward. Analysts are of the opinion that is just another step forward taken by the auto giant, which will ensure a higher place for it as compared to its rivals.

 

Analysts Bullish On Ford Motor Stock

Analysts Bullish On Ford Motor Stock

Most of the analysts remains bullish on stock of Ford Motor stock

Ford Motor has been covered by a number of analysts in the industry, who seems to be having quite a lot of different opinions on the stock of the auto making company. In recent news, it was seen that the giant reported some important transactions within the management to the Security Exchange Commission in which it was seen that one of the directors of the auto firm carried out a massive purchase valued up to $41,550 in the first week of September 2015. As for the standard deviation of the purchase of the shares, the figure has come around at a price of $8.73.
Analysts at Zacks have been giving Fords stock very close attention, keeping a track on all kinds of ups and downs that are observed by the company to know where it could be headed in the near future. According to the scale of 1 to 5 that is normally provided by the analysts of the equity firm to all the companies it chooses to cover to measure the kind of state it is in the industry, a particular rating has also been suggested for the hybrid car makers. Given how the earnings for the last reported financial quarter were more than the estimations set by the giant, analysts are of the opinion that this shows that the auto making giant is in a good position to go forward in the auto industry.
This rating by analysts at Zacks has been given to the giant supported by quite a lot of reasons, which include how Fords business has been carrying out proper launches of all of its cars and products timely and how it has put all of its attention towards growing in the Asian region along with the one it is already established in. Apart from that, the global deployment rate which has been noted down by the analysts has turned them over the top positive towards the future of the giant. As for One Ford turnaround, the plan has been deemed as a huge success by equity analysts and they believe that this has become one of the most important factors which have determined the current progress it has been facing the firm.
In the past trade session that was noted down by the stock index, Ford’s shares were seen to close at a price of $15.22. However, analysts firms like Vetr have also given out ratings to the giant with a price target that aims at a share price of $33.