This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ford Pushes Against Headwinds

DETROIT ( TheStreet) -- Ford (F - Get Report) said today that new products will enable its momentum to continue this year, despite a slowing economy and about $1 billion in added costs.

"We see the global economy improving, but obviously it is uneven," said Mark Fields, Ford president for the Americas, at an investor conference Thursday. "We do expect global growth to continue going forward."

China and India will grow, the U.S. will grow moderately and Europe is "a little bit of a worry spot," he said.

Ford will replace about 30% of its volume this year, said Fields, noting that "our replacement rate is at the top or right near the top of the industry [and] our approach is to make sure pipeline continues to remain full." He declined to specify a ceiling for Ford market share, which has climbed to 16.7% year-to-date from a low of 14.2% in 2008. During the past three decades, Ford's high point was 25.5% in 1996.

Market share gains and increased pricing power will help to offset Ford's anticipated $1 billion in new costs this year, partially due to higher commodity costs and higher costs associated with volume increases and new product introductions. Ford's big three introductions in 2010 include a new power train for the F-150 pickup, a new Ford Explorer (below) and the new Focus.

Another headwind reflects the slowdown in the acceleration of used car prices, which benefitted Ford Credit significantly in the first half of the year but "will tail off a bit in the second half," said Fields. Ford Credit profit growth is expected to slow in the second half.

CFO Louis Booth has said that Ford will be profitable this year despite the cost increases. The company has also said it will generate sufficient cash to continue paying down debt to the point that it will move from an automotive net debt position to a net cash position. That means the company will have more cash than debt by the end of 2011.

Ford stock was down four cents to $11.76 in early afternoon trading.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.44 0.90%
AAPL $92.30 -1.00%
FB $119.17 1.20%
GOOG $708.39 0.99%
TSLA $215.91 2.10%


Chart of I:DJI
DOW 17,690.91 +30.20 0.17%
S&P 500 2,047.37 -3.26 -0.16%
NASDAQ 4,703.1120 -13.9820 -0.30%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs