Ford CEO needs to deliver next quarter, or we will

news7g02/04/2023

1 2 minutes read

Ford CEO needs to deliver next quarter, or we will

Ford Motor (F) CEO Jim Farley said automakers’ tumultuous fourth quarter was the result of a transition to a new business structure that limited production capacity, combined with a poor performance. But we’re still disappointed with the results and need to see increased profitability to stick with the stock beyond the next quarter. In an interview with CNBC that aired on Friday, Farley said he was in the process of restructuring Ford to make the business more efficient but had faced challenges in simplifying processes at Ford. auto giant, which caused its profits to drop last quarter. “There’s a lot of things that have to change. We have a lot of complex issues with our customers and within our company. It takes time to work through that,” Farley said. Ford late Thursday reported adjusted earnings per share (EPS) much lower than analysts’ forecasts, eclipsing the revenue record. The company’s full-year EPS forecast was also weaker than expected, sending the stock plunging on Friday. Shares closed down more than 7.5% in afternoon trading, at $13.23 per share. The loss of earnings comes days after Ford said it is slashing the price of its electric Mustang Mach-E crossover while increasing production, weeks after electric vehicle industry leader Tesla (TSLA) made a move. similar state. The price drop means that not all Mach-E models are profitable on a per-unit basis. Last year, Ford announced the separation of electric vehicles (EVs) and internal combustion engine vehicles into separate business units, called Ford Model e and Ford Blue respectively. But profitability has yet to catch up with the restructuring process. Farley told CNBC that the automaker needs to overcome higher-than-expected costs, semiconductor chip shortages and supply-chain constraints to better margins at its electric vehicle division. “It took a simple effort to get to the 8% profit margin we were looking for,” he said. However, he added, management still needs to rethink how EVs are produced and distributed in a more cost-effective way. “It’s unforgivable that Ford has had such a bad quarter,” said Jim Cramer. of higher supply chain efficiency, increased production, improved cost structure, and better execution — but we need to see the results. , which means management has a quarter to go to get it right.If we don’t see improvement in the next quarterly report, we will have no choice but to move on. Jim Cramer’s Charity Mining Long F. See here for a full list of stocks.) As a CNBC Investment Club subscriber with Jim Cramer, you’ll receive trading alerts before Jim does. Jim waits 45 minutes after sending a trading alert before buying or selling shares in his charity’s portfolio If Jim has talked about a stock on the channel on CNBC, he will wait 72 hours after issuing a trading warning before making a trade. INFORMATION ABOUT THE ABOVE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, PLUS OUR DISCLAIMER. NO Fiduciary Obligations OR OBLIGATIONS EXIST, OR BE CREATE, BECAUSE OF YOUR RECEIVING ANY INFORMATION PROVIDED IN RELATED TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS GUARANTEED.

Ford CEO Jim Farley at the company’s Dearborn, Michigan plant, where they are building the electric F-150 Lightning on April 26, 2022.

CNBC | Michael Wayland

Ford Motor Chief Executive Officer (F) Jim Farley said automakers’ tumultuous fourth quarter was the result of a transition to a new business structure that limited production capacity, combined with the least. But we’re still disappointed with the results and need to see increased profitability to stick with the stock beyond the next quarter.