Ford today declared a 5-cent quarterly dividend

Article by Christian A., on December 9, 2011

A 5-cent quarterly dividend will be given to Ford Motor Co. shareholders on March 1 – their first payout since September 2006. Ford, the second-largest U.S. automaker, makes this move after it reported earnings of $1.65 billion in the quarter that ended in September. This is the tenth straight quarter that Ford has been profitable.

Ford has recently entered a four-year deal with the United Auto Workers that affects 40,600 of its hourly workers in the U.S. In a statement, Ford said that this dividend will be given to shareholders of record on Jan. 31.

In this statement, Executive Chairman Bill Ford said that the board considers it important to share with shareholders the gains that it has had from the improvements in its financial performance. He added that providing dividends is an “important sign” of progress in a company that increases its profits as well as its confidence.

Chief Executive Officer Alan Mulally was able to revive Ford by concentrating on the fuel economy and quality of its new models like the Fiesta subcompact and Explorer sport-utility vehicle, which was redesigned. In the past couple of years, Ford has recorded earnings of $9.28 billion.

It had lost $30.1 billion during the period from 2006 through 2008 with the drop in sales being followed by the global financial crisis. In New York, Ford’s shares fell by 3% to $10.75 at its closing.

Shares fell 36% this year after increasing 68% in 2010. In a recent conference call, Chief Financial Officer Lewis Booth said that this payout will cost Ford about $200 million a quarter. Booth said that Ford aims to avoid reducing the dividend if the economy suffers like in the past. But he asserts that Ford has significantly restructured the company and its break-even is lower than it had been in the past. [source: Autonews]

Topics: ford, united states

If you liked the article, share on:

Comments

Recommended

Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries