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DEARBORN - K.R. Kent, executive director, Ford Investor Relations group recently talked to @Ford about how Ford stock has been performing.
Q: Our stock price seems to be falling steadily. What's behind the drop?
A: The S&P 500 index of stocks has been declining for the last six weeks, since the beginning of May. Many investors are worried about a number of factors including the overall U.S. economy could be slowing, unemployment remains stubbornly high and housing prices continue to be weak. Our focus remains on the One Ford Plan. We continue to focus on great products, stronger business, and better world that lead to profitable growth for all.
Q: Does our stock price change have anything to do with our recent investor program?
A: No. The recent investor day was an event to communicate to all investors what we see as the future of Ford. We provided a look at where we see Ford by the middle of the decade with improved volumes and profitability from today. It was well received by the analyst and investor community. Most of the Bank analysts reconfirmed their views of Ford as positive. Of the nine bank analysts we track in detail, seven have a "buy" rating and two have a "hold" rating for our stock.
Q: What was the reaction of analysts and investors to the information we shared?
A: Overall the reaction was positive and help to reconfirm how many of the analyst and investors have been thinking about Ford. Click here for an example of their reporting.
Q: What are we telling analysts and investors to expect from our financial results for this year?
A: Our full year profit and cash flow guidance remains unchanged compared with our guidance at the time of the First Quarter earnings. Briefly, compared with 2010, we expect improvement in the Company’s total pre-tax profits, excluding special items, and Automotive operating-related cash flow. We expect Ford Credit to be strongly profitable, although less so than in 2010 due primarily to the non-recurrence of lower lease depreciation expense and the non-recurrence of allowance for credit loss reserve reductions of the same magnitude as in 2010.
Of course, as the year progresses, we will take advantage of every opportunity to strengthen our business further.