US:Analysts warm to Ford strategy - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
ยป Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Register Home Forum Active Topics Photo Gallery Auto Loans Garage Mark Forums Read Auto Escrow

FordForums.com is the premier Ford Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 10-25-2006, 06:49   #1 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
US:Analysts warm to Ford strategy

Analysts warm to Ford strategy

Mulally's meeting with Wall Street execs stresses product streamlining, efforts to manage costs.

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- Some Wall Street analysts tempered their bearish view of Ford Motor Co. Tuesday, a day after the company posted its largest quarterly loss in 14 years.

While Ford is expecting deep losses well into next year, Wall Street appears to be gaining confidence that new CEO Alan Mulally will help right its course.

Before the market opened Tuesday, Goldman Sachs upgraded its rating of Ford shares from sell to neutral. The move helped push Ford's stock up 40 cents or 5 percent to close at $8.30. It was the largest one-day gain by Ford since August and erased a modest drop Monday after it announced a $5.8 billion third-quarter loss.

"While Ford's cash-flow needs are considerable, we believe the company has sufficient liquidity resources at its disposal, which make bankruptcy unlikely, in our view," Goldman analyst Robert Barry wrote in a research note.

He said Mulally should have some impact on improving Ford given his "disciplined operating track record."

Mulally, 61, joined Ford in September after a long career with airplane maker Boeing Co., where he earned a reputation as a tough and effective operator.

Mulally and Ford Chief Financial Officer Don Leclair met with 14 analysts Tuesday at a midtown Manhattan hotel.

While Mulally wasn't known at Boeing for having an especially good rapport with Wall Street, analysts issued a number of generally positive reports after the meeting.

Mulally appears determined to simplify and streamline Ford's product offerings and production systems, analysts said.

He said the company has "too many models, too many platforms, too many different components," Credit Suisse analyst Chris Ceraso wrote in a note to investors.

"The implication was that the company has not used global platforms enough, has not re-used components enough across vehicles and across generations of the same vehicle, has too many variants of different parts and designs, and does not have enough production flexibility," wrote Morgan Stanley auto analyst Jonathan Steinmetz.

"When asked to quantify on a dollar basis the opportunity in attacking complexity, Mulally (and) Leclair declined to provide a precise figure, but suggested that the sandbox was very large."

Ford spokesman Oscar Suris confirmed the reports' accuracy.

Mulally and Leclair also promised to provide analysts with more details about how it plans to reduce its costs in North America by $5 billion next year.

Ford said in September it would dramatically shrink its North American operations by cutting 44,000 jobs -- including 14,000 salaried positions and 30,000 hourly positions.

The 14,000 white-collar cuts represent one-third of Ford's U.S. salaried work force and include 4,000 announced earlier this year.
__________________
Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 10-25-2006, 16:30   #2 (permalink)
Registered User
 
Stacy94PGT's Avatar
 
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
Re: US:Analysts warm to Ford strategy

Ford signals more transparency on turnaround

Reuters

DETROIT -- Ford Motor Co. will provide more financial transparency on its turnaround plan, particularly how its goal to save $5 billion in North American costs could get the automaker back to break even, analysts said.

Ford's new CEO Alan Mulally and CFO Don Leclair told a small group of analysts about the plan for greater disclosure when they met with them over lunch in New York on Tuesday, Oct. 24.

"Management did say that in its next Webcast event, it will more specifically outline how $5 billion of savings can get Ford back to break even," said Bear Stearns analyst Peter Nesvold, who attended the meeting, in a research note. "The key takeaway was that the current $5 billion cost target is really just a starting point."

Ford spokeswoman Becky Sanch said the meeting was set up because Mulally wanted to meet with members of the investment community.

Mulally also acknowledged to analysts that the turnaround will take a long time and there will no dramatic improvement in profitability any time soon.

Ford on Monday, Oct. 23, posted a $5.8 billion loss, its largest in 14 years, as it absorbed charges for restructuring, operating losses and asset write-downs.

Ford, which stopped providing financial guidance in January, has been criticized for not giving more details on its plan to return to profitability by the end of 2009 in North America.

"(Mulally) and CFO Leclair also seem to have embraced a philosophy of greater financial transparency if not earnings guidance, which we applaud," JP Morgan analyst Himanshu Patel said in a note today, after attending the meeting.

Ford also cautioned on Monday that operating results would weaken in the current quarter and cash flow would remain negative in the coming few years.

But Wall Street appears to be gaining confidence that Mulally, a former Boeing Co. executive credited with turning around the aircraft maker's commercial plane division, will be able to steer Ford back to profits.

"Our overall impression of Mulally was quite positive," Deutsche Bank analyst Rod Lache said in a note. "We see him as credible and inspiring leader who should be able to make an impact in what has historically been a slow-moving, and obdurate bureaucracy."

Mulally also told analysts that he wants to simplify and streamline Ford's product offerings and production systems.

He said Ford has "too many models, too many platforms, too many different components," Credit Suisse analyst Chris Ceraso wrote in a note to investors. "Streamlining that complexity represents a huge opportunity for Ford to improve returns and create shareholder value."

Ford plans to close 16 plants, slash nearly 45,000 jobs and is offering buyouts to about 75,000 of its union workers as part of its restructuring.
__________________
Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 19:33.



Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.