Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ford (F) Beats Odds To Restart F-150 Pickup-Truck Production

Published 05/17/2018, 08:43 AM
Updated 07/09/2023, 06:31 AM

Ford Motor Company (NYSE:F) announced the production restart of its F-150 pickup truck at its Dearborn, MI facility on Friday. While the production of the same model will resume at its facility in Kansas City, MO and its F-series truck hub in Louisville, KY on Monday.

The production of the F-150 truck was stopped on May 7. An explosion on May 2 at its parts supplier, Meridian Magnesium plant, led to a shortage of parts for manufacturing the F-150 pickup trucks. The disaster at Eaton Rapids, MI hub caused major manufacturing disturbance in the automotive industry, forcing many automakers to make alterations or halt production.

In order to help Meridian from the disaster, Ford, along with suppliers and contractors, removed 19 dies from the damaged facility. This included shifting an 87,000-pound die from Eaton Rapids to Nottingham, U.K. by using one of the largest cargo planes, Antonov. A die is a tool that is used to cut or shape material, using a press. The company also examined and repaired dies to restart the production at Meridian Magnesium’s Eaton Rapids facility.

Ford Motor Company Price and Consensus

The best-selling vehicle of the United States, F-150 full-size pickup truck generated revenues of $41 billion in 2017. The figure comprised of roughly 28% of Ford’s total sales and also contributed a major share in profits. For second-quarter 2018, the company anticipated an adverse impact of 12-14 cents per share due to the production halt. Further, this led to temporary laying-off of workers from the company’s three plants that manufacture the pickup truck.

Price Performance

Over a month, Ford’s stock has inched up 0.6%, outperforming 4.1% decline of the industry it belongs to.

Zacks Rank & Stocks to Consider

Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. (NYSE:MGA) , General Motors Company (NYSE:GM) and Ferrari N.V. (NYSE:RACE) . Magna and General Motors carry a Zacks Rank #2 (Buy) while Ferrari sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Magna has an expected long-term growth rate of 8.5%. In a year’s time, shares of the company have gained 49.3%.

General Motors has an expected long-term growth rate of 5.5%. Shares of the company have risen 17.1% over the past year.

Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 58.9% over the past year.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>



Ford Motor Company (F): Free Stock Analysis Report

General Motors Company (GM): Free Stock Analysis Report

Magna International Inc. (MGA): Free Stock Analysis Report

Ferrari N.V. (RACE): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.