Boston, MA 01/10/2013 (wallstreetpr) – American auto giant Ford Motor Company (NYSE:F) hiked its quarterly dividend by 25%, seeing volumes of its shares being sold off which was triggered by its recent sales guidance envisaging falling profit margins for the current fiscal year. Ford increased the dividend payout to $0.125 from the previous $0.10, which is estimated to cost an additional $97 million approximately a quarter for the giant.
Ford’s warning:
Ford Motor Company (NYSE:F) warned investors and Wall Street recently that currency devaluations and spiking expenses could adversely impact its 2014 profit levels. This warning is in stark contrast to encouraging prospects being seen for the first time since 2009 by American automobile manufacturers. The year 2009 marked a major market collapse for automakers with heightened competition and reduced market share. The sales guidance seems to have rattled off investors, witnessing a sudden volume of selloffs in its shares. This is the second time the global automobile major has doubled its quarterly dividend, albeit for different reasons, the first being last year to $0.10 a share due to good business footing.
Mulally Scotches Rumors; Finally:
Meanwhile, the American auto giant was relieved a few days ago, after its CEO Alan Mulally clarified to the press that he would stay put at the automaker, quashing news of his move to software conglomerate Microsoft. Mulally, while never concealing his interests to contribute to the technology behemoth, put the grapevine to rest by clarifying that he would continue to serve Ford at least until 2014 ends. Ford and Mulally have been at the center of attention, with Ford worried with detrimental impact on its stocks due to the equations posed by Mulally’s exit. Ford’s board subsequently asked Mulally to clarify his stance. The clarification by Mulally saw a mixed response in stocks, sending Microsoft shares down while bolstering Ford. Ford Motor Company (NYSE:F)’s stocks rose nearly 2% in their January 9 trading session on NYSE to close at $15.84 from their previous $15.54, while after-hours figures surged another three points to $15.87.
