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

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 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