Entering text into the input field will update the search result below

Ford (F, $9.20) Is Ending Production In Brazil; To Incur $4.1 Billion In Charges For South American Restructuring

Jan. 12, 2021 8:22 PM ETFord Motor Company (F)
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Summary

  • Ford Motor ending vehicle manufacturing in Brazil.
  • Estimated to lead to $4.1 billion in pretax charges.
  • Aims to execute $11 billion turnaround plan; hopes to achieve an 8% adjusted EBIT margin.

Ford Motor is ending vehicle manufacturing in Brazil, as part of a restructuring process.

The automaker is shutting three plants in Brazil, as part of the South America restructuring process which is estimated to lead to $4.1 billion in pretax charges, according to the company’s statement.

Ford is currently restructuring its global operations, including those in South America. The company aims to execute a $11 billion turnaround plan, and hopes to achieve an 8% adjusted EBIT margin and to consistently generate strong adjusted free cash flow.

THE FOLLOWING PART OF THE ARTICLE IS UPDATED ON JANUARY 12, 2021

Industry description

Automobiles continue to be arguably the most popular form of passenger travel in the U.S., and major automobile makers have revenues and market capitalizations running into multi-billions. In recent years, the industry has been experiencing some path-breaking innovations like electric vehicles and self-driving technology. While there are long-standing companies like General Motors, Ford, and Toyota Motors operating in this space, there are also emerging/rapidly growing players like Tesla – which has had a major role in the growing popularity of the electric vehicle market. With technological advancements taking steam in the auto space, we’ve also witnessed collaborations (or talks of potential partnerships) of carmakers with tech behemoths like Google’s subsidiary, Waymo.

Industry's Market Caps

The average market capitalization across the Motor Vehicles Industry is 66.7B. The market cap for tickers in the group ranges from 381.4M to 768.9B. TSLA holds the highest valuation in this group at 768.9B. The lowest valued company is GP at 381.4M.

Industry's high and low price movers

The average weekly price growth across all stocks in the Motor Vehicles Industry was 15.35%. For the same Industry, the average monthly price growth was 19.15%, and the average quarterly price growth was 96.85%. NIU experienced the highest price growth at 43.36%, while RACE experienced the biggest fall at -3.53%.

Industry's volume movers

The average weekly volume growth across all stocks in the Motor Vehicles Industry was -21.24%. For the same stocks of the Industry, the average monthly volume growth was -29.84% and the average quarterly volume growth was -16.3%

Industry's Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 64

P/E Growth Rating: 49

Price Growth Rating: 42

SMR Rating: 72

Profit Risk Rating: 82

Seasonality Score: -32 (-100 ... +100)

Stocks in the group have a Positive Outlook today, backed by the 15 Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 40%. During the last month, the daily ratio of advancing to declining volumes was 2.65 to 1.

10 stocks in the group of tickers confirmed the positive outlook based on the Aroon indicator with average odds of 75%.

Notable companies

The most notable companies in this group are Tesla Inc (NASDAQ:TSLA), NIO Inc - ADR (NYSE:NIO), General Motors Company (NYSE:GM), Ford Motor Co. (NYSE:F), Fiat Chrysler Automobiles NV (NYSE:FCAU), Harley-Davidson, Inc. (NYSE:HOG).

Industry description

Automobiles continue to be arguably the most popular form of passenger travel in the U.S., and major automobile makers have revenues and market capitalizations running into multi-billions. In recent years, the industry has been experiencing some path-breaking innovations like electric vehicles and self-driving technology. While there are long-standing companies like General Motors, Ford, and Toyota Motors operating in this space, there are also emerging/rapidly growing players like Tesla – which has had a major role in the growing popularity of the electric vehicle market. With technological advancements taking steam in the auto space, we’ve also witnessed collaborations (or talks of potential partnerships) of carmakers with tech behemoths like Google’s subsidiary, Waymo.

Industry's Market Caps

The average market capitalization across the Motor Vehicles Industry is 66.7B. The market cap for tickers in the group ranges from 381.4M to 768.9B. TSLA holds the highest valuation in this group at 768.9B. The lowest valued company is GP at 381.4M.

  • 1/12/21 8:08 AM: Tesla (TSLA, $811.19) saw a $77.2B market cap increase this week
  • 1/5/21 4:29 AM: Tesla (TSLA, $729.77) saw a $62.6B market cap increase this week
  • 12/31/20 2:51 AM: Tesla (TSLA, $694.78), market cap jumped by $27.3B

Industry's high and low price movers

The average weekly price growth across all stocks in the Motor Vehicles Industry was 15.35%. For the same Industry, the average monthly price growth was 19.15%, and the average quarterly price growth was 96.85%. NIU experienced the highest price growth at 43.36%, while RACE experienced the biggest fall at -3.53%.

  • 1/12/21 8:10 AM: Kandi Technologies Group (KNDI, $8.12) was a top weekly gainer, with a +10.78% jump. Expect an Uptrend reversal
  • 1/8/21 3:06 AM: Nikola (NKLA, $17.82) was a top weekly gainer, with a +16.78% jump. Expect an Uptrend reversal
  • 1/6/21 3:15 AM: Arcimoto (FUV, $13.3) was a top loser this week, declining -5.61%. Expect a Downtrend continuation

Industry's volume movers

The average weekly volume growth across all stocks in the Motor Vehicles Industry was -21.24%. For the same stocks of the Industry, the average monthly volume growth was -29.84% and the average quarterly volume growth was -16.3%

  • 1/12/21 7:41 AM: The volume for Toyota Motor Corporation - ADR stock increased for four consecutive days, resulting in a record-breaking daily growth of 75% of the 65-Day Volume Moving Average
  • 12/31/20 2:36 AM: The volume for Fiat Chrysler Automobiles stock increased for one day, resulting in a record-breaking daily growth of 284% of the 65-Day Volume Moving Average
  • 11/25/20 3:26 AM: The volume for Niu Technologies - ADR stock increased for one day, resulting in a record-breaking daily growth of 319% of the 65-Day Volume Moving Average

Industry's Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 64

P/E Growth Rating: 49

Price Growth Rating: 42

SMR Rating: 72

Profit Risk Rating: 82

Seasonality Score: -32 (-100 ... +100)

Master your trading skills without risking real money. Tickeron offers unlimited free paper trades to test your trade ideas and test Tickeron tools in action!

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.