The Board of Directors of Ford Motors Company (NYSE:F) declared a $1 billion supplemental cash or $0.25 per share in addition to its regular cash dividend of $0.15 per share for the first quarter after generating a solid profit in 2015.
In a statement, Ford CEO Mark Fields, commented, “As we close out 2015, we are benefiting from six consecutive years of consistently strong results, and our performance is allowing us to reward our shareholders.”
Mr. Fields also said the pattern of strong returns provided a great platform for the management to build on while focusing on strengthening the company’s core business and engaging aggressively in emerging technologies through Ford Smart Mobility.
Ford has robust cash and liquidity levels
With the $1 billion extra cash dividend for shareholders, Ford showed that has strong financial performance, robust cash and liquidity levels. The supplemental cash dividend will be payable on the automakers’ outstanding Class B and common stock on March 1 to shareholders on record at the close of business on Jan. 29.
Ford expected to report a pre-tax profit excluding special items on the high-end of its guidance of around $10 billion to $11 billion for 2015.
The automaker benefited from its increasing sales of vans and pickup trucks in the United States. The company’s F-series is America’s best-selling pickup truck for 39 consecutive years and best-selling vehicle for 34 straight years. Ford sold 780,354 F-series trucks in 2015.
Ford’s van sales rose 32% to 220,586 units last year. It was the highest van sales performance in the history of the automaker.
Ford’s total vehicle sales increased 5% to 2,613, 162 units last year—its best annual sales result in nine years.
2016 business outlook
Ford expected to continue to achieve strong financial performance in 2016 with automotive revenue equal or higher than 2015. The company expects its automotive operating margin to be equal or higher than 2015.
Ford expected its 2016 pre-tax profit excluding special items, to be similar to or higher than 2015, and operating earnings per share to be about equal to or higher than 2015
The automaker estimated to generate a 9.5% or higher operating margin growth for its North American business units. Its businesses in the Asia Pacific, Europe, and Middle East are expected to be profitable this year.
Ford plans to launch 12 products globally including the new F-Series Super Duty, Ford GT, and Lincoln Continental. Last year, the automaker launched 16 new vehicles.
“In 2015, we achieved a breakthrough year as promised. For 2016, we’re looking forward to delivering another outstanding year,” said Mr. Fields.