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Ford, the second largest U.S. automaker, affirmed that it was on
track to deliver about $10.2 billion in adjusted pretax profit
in 2016, matching a forecast it gave previously..
Ford shares initially rose 0.5 percent in extended trading but
by early Tuesday evening were flat with their closing value of
$12.85. GM shares were also trading near their close of $37.35,
up 3.7 percent from the previous day.
Ford said profit would improve in 2018 but in 2017 the company
would be pressured as it increased spending on "emerging
opportunities" including self-driving cars and a rise in other
costs.
The company last week said it was on course to deliver a
"high-volume, fully autonomous vehicle for ride sharing in 2021"
and a fully electric small SUV with a range of at least 300
miles on a full charge.
GM, the largest U.S. automaker, said it expected 2017 earnings
per share in a range of $6 to $6.50. Analysts had, on average,
predicted the company would post EPS this year of $5.76,
according to Thomson Reuters I/B/E/S.
Ford on Tuesday declared a first-quarter regular dividend of
$0.15 per share and a $200 million supplemental cash dividend,
or an additional $0.05 per share. The regular dividend matched
that of the first quarter of 2016, but the supplemental dividend
was below the $0.25 per share payout announced a year ago.
Chief Executive Mark Fields in comments to Wall Street analysts
at a meeting webcast from Detroit said the adjusted operating
effective tax rate in 2016 was expected to be 32 percent. That
was up from an expectation a few months ago for a 2016 tax rate
of 28.5 percent, said Ford Chief Financial Officer Bob Shanks.
Shanks said that for 2017, Ford expected the adjusted operating
tax rate to be about 30 percent.
(Reporting by Bernie Woodall; Editing by Andrew Hay)
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