Ford (F) Shares Down on November Sales Data

Shares of Ford Motor Company (F) closed down .50 a share on Tuesday, or -2.93%, at $16.56. This despite a reported 7% increase in vehicle sales in November. Sales increased to 190,449 vehicles this November, up from 177,673 in November of 2012. On Tuesday, the company reported that total retail sales increased by 9%, resulting in the best November sales results for the company since 2004.

Sales results were somewhat mixed in the company’s product line.
Car sales rose by 6%, to 58,983 vehicles, while truck sales increased by 15.5%, to a total of 78,693 units. However sales of utility vehicles fell to 52,773, a decline of 2%. Sales of the company’s most popular car, the Ford Fusion, came in at 22,839 units, while sales of the popular F-series pickup trucks rose 16.3%, to 65,501.

Tuesday’s decline in the share price came amid a decline in stocks overall that hit the consumer discretionary sector particularly hard. Shares of General Motors (GM) were also down significantly. According to Wall Street analysts, Tuesday’s market reaction represents concern that the pent up demand driving auto sales will not support further sales gains beyond 2014.

Dearborn, Michigan-based Ford Motor Company is a US-based, multi-national automaker. It is the second largest automaker in the United States, and the fifth largest in the world based on 2012 vehicle sales. The company sells cars, light trucks, and commercial vehicles under the Ford name, and luxury cars under the Lincoln brand. The company also has small ownership positions in Mazda and Aston Martin.

In 2012 the company sold 5,595,483 vehicles worldwide, including 2.25 million in the US alone. The company had net profit of $5.596 billion, on total sales of $134.25 billion. Net earning for the year were $1.41 per share, with a P/E ratio of 11.34.

Early last month the company began production of the 2014 F-150 pickup truck, capable of running on compressed natural gas. The vehicle will also be able to run on liquefied petroleum gas, making it the only auto company to offer a compressed natural gas/liquefied petroleum gas powered half ton truck. The truck will be capable of achieving 750 miles using the biofuel combination of gasoline and compressed natural gas/liquefied petroleum gas. The rollout of the truck will help Ford to reach it’s goal of selling 15,000 alternate fuel vehicles by the end of 2018.

In July, the company announced that the new Ford Escape became the first ever small utility vehicle to break the 150,000 vehicle sales mark through the first six months of the year. The company sold 156,626 Escapes through June 30, a pace that’s well ahead of its total sales of 261,008 for all of 2012. The Escape has outsold both the Honda CRV and the Toyota RAV4 through the first half of this year.

Other News About Ford
Canada Auto Sales Set Record November, Ford Leads Pack
Ford leads Canada in year-to-date sales, with 267,427 cars and trucks, up 3.2%.
Ford Unveils Global Small Car, Key To Opening Emerging Markets
Ford will bring the global Ka to other emerging markets, including China.

Other Stocks in the News
Amazon Tests Drones for Same-Day Parcel Delivery, Bezos Says
Amazon is shaking up the online world once again - will it work this time?
US Clears Microsoft-Nokia Deal, and More
Microsoft moves a step closer to acquiring Nokia's mobile business.

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Published on Dec 4, 2013
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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