Ford To Pay Extra Dividend Source: Dow Jones New
Post# of 94266
Posted On: 01/13/2016 6:47:27 AM
Ford To Pay Extra Dividend
Source: Dow Jones News
(FROM THE WALL STREET JOURNAL 1/13/16) By Christina Rogers
Ford Motor Co., expecting to post record 2015 pretax profits, declared a supplemental dividend of $1 billion Tuesday that it will pay to shareholders on top of its regular first-quarter dividend.
The No. 2 U.S. auto maker, which is benefiting from a booming U.S. car market, forecasts 2016 pretax profits equal to or better than those in 2015 with its performance in North America expected to remain strong, posting an operating margin of 9.5% or higher.
Ford expects pretax profit, excluding special items, to be in the upper half of its guidance of $10 billion to $11 billion for 2015.
As a result of the strong performance and its "robust cash and liquidity level," Ford said it would pay a special cash dividend equal to 25 cents a share on its Class B and common stock on March 1.
That payout is in addition to its regular dividend of 15 cents a share.
"We think that's an attractive reward and the appropriate thing to do," said Ford's Chief Financial Officer Bob Shanks, noting the company is targeting a top quartile total shareholder return.
While he didn't rule out a share buyback, Mr. Shanks said "it's probably not in the cards" for this year.
(END) Dow Jones Newswires
January 13, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
(FROM THE WALL STREET JOURNAL 1/13/16) By Christina Rogers
Ford Motor Co., expecting to post record 2015 pretax profits, declared a supplemental dividend of $1 billion Tuesday that it will pay to shareholders on top of its regular first-quarter dividend.
The No. 2 U.S. auto maker, which is benefiting from a booming U.S. car market, forecasts 2016 pretax profits equal to or better than those in 2015 with its performance in North America expected to remain strong, posting an operating margin of 9.5% or higher.
Ford expects pretax profit, excluding special items, to be in the upper half of its guidance of $10 billion to $11 billion for 2015.
As a result of the strong performance and its "robust cash and liquidity level," Ford said it would pay a special cash dividend equal to 25 cents a share on its Class B and common stock on March 1.
That payout is in addition to its regular dividend of 15 cents a share.
"We think that's an attractive reward and the appropriate thing to do," said Ford's Chief Financial Officer Bob Shanks, noting the company is targeting a top quartile total shareholder return.
While he didn't rule out a share buyback, Mr. Shanks said "it's probably not in the cards" for this year.
(END) Dow Jones Newswires
January 13, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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