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Ford shares slip after company highlights execution issues - Wall St. Journal

TellurideBronco

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Some of the highlights from the article are below. Well over 50% of the total compensation for senior executives come from stock grants and stock options. Hopefully, solving these issues is truly Job 1 for Ford’s executives.


Shares of Ford Motor Co. F -7.75%decrease; red down pointing triangle slipped nearly 8% after the auto maker said continued supply-chain challenges and execution issues hit the company’s quarterly profit and led it to miss its 2022 target.

Its stock fell to $13.21 a share on Friday morning, on pace for its largest percentage decline since September. Over the past 12 months, the stock is down almost 34%.

The Dearborn, Mich.-based Ford said Thursday evening that fourth-quarter earnings tumbled 89% from a year earlier. The company also fell more than $1 billion shy of the 2022 pretax operating profit guidance it had provided about three months earlier. Chief Executive Jim Farley said the company “left about $2 billion of profit on the table.”
“We have deeply entrenched issues in our industrial system that have proven tough to root out,” Mr. Farley said Thursday evening. “Candidly, the strength of our products and revenue has masked this dysfunctionality for a long time. It’s not an excuse, but it’s our reality. And we’re dealing with it urgently.”

Analysts at JPMorgan Chase & Co. said the issues outlined by Ford executives aren’t restricted to the company, but that they appear to have hit Ford particularly hard. While many of the factors are beyond the company’s control, in some cases the company’s “execution in anticipation or response to these issues has also lagged,” the analysts said.

“The good news is consumers want Ford’s products and profitability is higher than historical levels while valuation is lower,” they said.

Ford’s weaker-than-expected quarter comes after rival General Motors Co. said earlier this week that rebounding factory output, easing supply-chain constraints and a backlog of prospective buyers helped drive better-than-expected results.
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LS2GTO

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Not surprising given the complete dysfunction of the entire organization that we have witnessed a small part of. Farley needs to go.
 

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Not surprising given the complete dysfunction of the entire organization that we have witnessed a small part of. Farley needs to go.
Agreed.
When the financiers move against you, you know it's time for a new CEO, regardless on the amount of time they have been in the positions

Ford’s CEO needs to deliver by next quarter, or we’re moving on from the stock
More details in this thread:
CNBC: Ford CEO Jim Farley’s frustration builds as he vows to transform the automaker
 
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Some of the highlights from the article are below. Well over 50% of the total compensation for senior executives come from stock grants and stock options. Hopefully, solving these issues is truly Job 1 for Ford’s executives.


Shares of Ford Motor Co. F -7.75%decrease; red down pointing triangle slipped nearly 8% after the auto maker said continued supply-chain challenges and execution issues hit the company’s quarterly profit and led it to miss its 2022 target.

Its stock fell to $13.21 a share on Friday morning, on pace for its largest percentage decline since September. Over the past 12 months, the stock is down almost 34%.

The Dearborn, Mich.-based Ford said Thursday evening that fourth-quarter earnings tumbled 89% from a year earlier. The company also fell more than $1 billion shy of the 2022 pretax operating profit guidance it had provided about three months earlier. Chief Executive Jim Farley said the company “left about $2 billion of profit on the table.”
“We have deeply entrenched issues in our industrial system that have proven tough to root out,” Mr. Farley said Thursday evening. “Candidly, the strength of our products and revenue has masked this dysfunctionality for a long time. It’s not an excuse, but it’s our reality. And we’re dealing with it urgently.”

Analysts at JPMorgan Chase & Co. said the issues outlined by Ford executives aren’t restricted to the company, but that they appear to have hit Ford particularly hard. While many of the factors are beyond the company’s control, in some cases the company’s “execution in anticipation or response to these issues has also lagged,” the analysts said.

“The good news is consumers want Ford’s products and profitability is higher than historical levels while valuation is lower,” they said.

Ford’s weaker-than-expected quarter comes after rival General Motors Co. said earlier this week that rebounding factory output, easing supply-chain constraints and a backlog of prospective buyers helped drive better-than-expected results.
This is the real impetus to become primarily an EV transportation pod manufacturer (and tech company).

Then stock prices would trade at many multiples of earnings no matter what production problems arise.

like Tesla
 
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Not surprising given the complete dysfunction of the entire organization that we have witnessed a small part of. Farley needs to go.
I am pretty sure canceling all the chip orders happened before he became CEO.

He is our last hope for performance cars, racing and ICE within FoMoCo.
 

PrepVet

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I have a “bunch” of Ford shares somewhere. My grandfather left to me as he worked for Ford for over 50 years. I think the sentimental attachment I have to them is worth more the stock.
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