DETROIT, Mich. (Reuters) – Ford Motor Company said on Tuesday it plans to return more cash to shareholders, starting with an 18-cent-per-share increase in its first-quarter dividend, taking a similar approach to General’s Motors.
The automaker’s stock was up 6% in after-hours trading, confirming gains recorded during the session.
Ford said it expects annual pretax profits of between $10 billion and $12 billion for 2024. It reported a pretax profit of $10.4 billion last year.
The manufacturer’s operations in North America will contribute $6 billion to $7 billion to expected cash flow this year. Between 40% and 50% of this cash flow will be given to investors, Ford promised.
Speaking on a conference call with journalists, the group’s chief financial officer, John Lawler, said the new generation of electric vehicles would be “profitable”, as Model E operations weigh on the manufacturer’s accounts but are offset by profits from the professional commercial vehicle division.
Cost-cutting plans and demand for SUVs have helped automakers cope with inflationary pressures and signs of slowing demand for electric cars.
(Reporting Joe White in Detroit and Nathan Gomes in Bangalore; Jean Terzian)
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