(BFM Bourse) – The American automobile manufacturer has exceeded expectations and delivered encouraging prospects. Which allows its action to progress on Wall Street
If Tesla continues to fall on the stock market, the good old automobile manufacturers of Detroit are in good shape. General Motors had already seduced investors last week with its quarterly accounts.
This Wednesday it is Ford’s turn to tick the right boxes on Wall Street, the American manufacturer progressing by more than 1.6% at the start of the session, after having gained more than 7% just after the opening of the American market. Which also brings in its wake European groups in the same sector: Stellantis takes 1%, Renault 2.1% and Volkswagen 1.5%.
The group delivered results above expectations for the fourth quarter. Revenue rose about 4% to $46 billion. Revenues from automotive activities alone totaled $43.3 billion.
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Cost reductions
Earnings per share, a data closely followed on Wall Street, stood at 29 cents, weighed down by exceptional items. Adjusted operating income was $1.1 billion.
According to an LSEG consensus cited by CNBC, analysts on average expected earnings per share of just 14 cents and automotive revenues of $40.12 billion.
For 2024, Ford has indicated that it expects adjusted operating profit of between $10 and $12 billion (compared to $10.4 billion in 2023) and cash flow of between $6 and $7 billion, compared to $6.8 billion in 2023. .
According to CNBC, analysts were less optimistic than the group and instead expected adjusted operating profit ranging from $9 billion to $11 billion for 2024. Ford’s forecasts are based on stable or slightly increasing volumes in 2024 in the United States. -United for the entire automotive sector, with lower prices overall.
“Across our global industrial system, we have identified and will unlock $2 billion in cost reductions, in areas such as materials, freight and manufacturing – and we are just getting started,” he said. also said the group’s operations director, Kumar Galhotra, quoted in a press release.
Heavy losses in electricity
“It was a solid year, but I want to be very clear,” warned general manager Jim Farley, speaking to analysts. “We’re nowhere near our earnings potential for Ford. And we’re really well positioned this year for growth and profitability, as well as revenue,” he said.
At a time when doubts about the growth and profitability of electric vehicles are becoming more pressing, the manager assured that the group would control its expenses in this area. “All of our EV (electric vehicle) teams are ruthlessly focused on the cost and efficiency of our EV products, because the ultimate competition will be Tesla and the Chinese OEMs,” he said.
“This bet and all the capital resizing measures and even the delays of some of our products, taking into account market realities, allow us to better balance growth, profits and returns on investment,” he said. for follow-up.
In 2023, Ford’s electric division called “Ford Model e” suffered an operating loss of $4.7 billion, compared to profits of more than $7 billion each for Ford Blue (thermal combustion vehicles) and Ford Pro (utilities).
To give tangible signals of confidence to its shareholders, Ford has also announced an exceptional dividend of 18 cents per share, in addition to the ordinary dividend of 15 cents per share.
Julien Marion – ©2024 BFM Bourse