Ford Says Revitalization Efforts Are On Track
Ford Motor Co. said its plans to deliver roughly $7 billion of pretax annual profits by the middle of this decade are on track, according to a filing Oct. 21 with the Securities and Exchange Commission. The Dearborn, MI, automaker reiterated that it expects to earn about 40 cents a share operating profit this year. The 8-K filing by the company contained a presentation to be made by Ford executive officers in a series of meetings this week to provide updates of its revitalization program to Wall Street and institutional investors. The meetings, which will run Oct. 21-Oct. 24, will feature William Clay Ford, Jr., Ford's chairman and chief executive; Allan Gilmour, Ford's chief financial officer; and Malcolm Macdonald, Ford's vice president and treasurer. Ford indicated that one of the key elements to the revitalization program was to strengthen its balance sheet and maintain strong liquidity. According to the 8-K filing, the company is accelerating its cost reductions and improving its operating efficiency. Ford also said that it is revising near-term priorities to ensure a sustainable rate of growth, and that this year it has reduced its corporate nonproduct costs by $2 billion. The company also said that its U.S. retail share is gaining momentum, with particularly strong figures in its Ford division. Ford also noted that it achieved market-share growth, despite lower marketing costs than its domestic competition. In addressing other concerns about its product pipeline, Ford said it plans to produce a wave of new products in the next 18 months.