Ford’s board of directors declared a quarterly dividend Thursday, awarding 5 cents per share.
The automaker noted the dividend is payable March 1 to shareholders of record of Class B and common stock on Jan. 31.
“We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” stated executive chairman Bill Ford.
“The board believes it is important to share the benefits of our improved financial performance with our shareholders. We are pleased to reinstate a quarterly dividend, as it is an important sign of our progress in building a profitably growing company and our confidence in the future,” the Blue Oval’s top boss continued.
Lewis Booth, Ford’s executive vice president and chief financial officer, said the company’s strong liquidity and balance sheet improvements provide the underlying financial strength to resume paying a quarterly dividend.
“Building a strong balance sheet that supports our growth plans remains a core part of our One Ford strategy,” Booth insisted.
“We have demonstrated our capability to finance our plans, and we are confident that we can begin to pay a dividend that will be sustainable through economic cycles,” he added.
When discussing Ford’s most recent financial performance, the OEM accentuated the positives of the third quarter since it was judged against the company’s best performance ever. The automaker watched its third-quarter net income drop by $38 million or 2 cents per share year-over-year.
The Blue Oval revealed in October that its third-quarter net income totaled $1.6 billion, or 41 cents per share, but Ford president and chief executive officer Alan Mulally insisted the OEM continued to generate solid profits, strengthen its balance sheet and invest for future growth, as well as take actions to improve its competitiveness.
“We delivered solid results for the third quarter despite an uncertain business environment by continuing to serve our customers around the world with best-in-class vehicles,” Mulally stressed about the company’s second highest-ever profit for a quarter that was exceeded only slightly by the 2010 third quarter.
“We accomplished this while continuing to invest for future growth and focusing on developing outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value,” he continued.
Backing up Mulally’s assertions, Ford’s November U.S. retail sales increased 20 percent versus a year earlier as its total sales were 166,865, up 13 percent.
Ford estimated its retail market share has averaged 15 percent in the last three months — its highest retail share in five years.
The Ford brand retail sales were higher for most products with double-digit gains posted by Fiesta, Fusion, Escape, Explorer, F-Series, Econoline and Ranger.
“With gasoline prices continuing to track higher than last year, consumers continue to value fuel economy — no matter what size or kind of vehicle best meets their needs,” stated Ken Czubay, Ford’s vice president of U.S. marketing, sales and service.
“Most Ford products deliver best-in-class fuel economy and provide customers an opportunity to choose what best works for them — EcoBoost technology or electrified vehicles,” Czabay added.
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