The strike is targeted at one of Ford's key F-150 pickup truck manufacturing plants in Kansas City, which employs 7,500 workers.
The UAW is currently in talks with Detroit's big three auto makers including General Motors (GM) - Get Report and Fiat Chrysler (FCAU) - Get Report for a new labor agreement after the previous one expired September 14.
A Ford spokesman said that the company is "confident we will be able to negotiate a fair and competitive labor agreement with our UAW partners," according to Reuters.
Separately, TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate FORD MOTOR CO (F) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 43.8% when compared to the same quarter one year prior, rising from $1,311.00 million to $1,885.00 million.
- Net operating cash flow has slightly increased to $5,210.00 million or 9.68% when compared to the same quarter last year. In addition, FORD MOTOR CO has also modestly surpassed the industry average cash flow growth rate of 8.16%.
- FORD MOTOR CO has improved earnings per share by 46.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORD MOTOR CO reported lower earnings of $0.78 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $0.78).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.4%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Automobiles industry and the overall market, FORD MOTOR CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full analysis from the report here: F