Ford Motor Co. posted an increase in profit of 65% on Wednesday, but lenders are not yet satisfied and neither were investors.
Ford CEO Jim Hackett and CFO Bob Shanks repeated themselves several times on Wednesday that the automaker must become more “fit” financially. Investors want to see specifics of the way the company is going to make that happen.
However, details were not released by Hackett or Shanks on how they plan to make it happen, outside of saying things such as accountability, simplicity and efficiency.
Hackett told investors it would not be long before he provides details of his plan to those who are not part of the company since he must first lay out the plans internally.
Ford ended 2017 with $7.6 billion in net income, but the automotive part of the company posted a pre-tax profit of $7.3 billion on revenue of $145.7 billion. Overall, the pre-tax profit fell $1.9 billion from 2016.
Shanks on two occasions has expressed his discontent with the position the company is in for 2018, with the first time two weeks ago and the second after Ford posted earnings and the market had closed on Wednesday.
Ford is planning to roll out 23 new products worldwide during 2018. Eleven of them will be launched in North America. The automaker is launching 21 in Europe, where it earned a profit before taxes of $234 million during 2017.
Ford will introduce 16 new products in 2018 in the Asia Pacific region where it earned a profit before taxes of $561 million in 2017.
The mobility arm of Ford is launching a new test fleet during the first three months of 2018 in a city in the U.S. and in multiple cities during the upcoming two years.
Ford has already said it would be manufacturing a new hybrid-electric vehicle that will have a new name for its program of autonomous vehicles. The new vehicle will run as long as 20 hours each day and be purpose-built.
Ford is planning to spend $11 billion to bring 40 new electric-powered vehicles to the market in the next four years.
Ford is expecting adjusted per share earnings will fall in 2018 between $1.45 and $1.70. That is lower than the per share earnings of $1.78 posted Wednesday for 2017. Cash flow is expected to be lower for Ford in 2018 as well.
Ford stock has increased since Hackett became CEO in May, but declined after the posting of results Wednesday.