Before we get into Ford Motors, lets quickly take a look at a micro cap company that is receiving increased interest from traders and investors. Life Clips®, Inc. (LCLP) today announced that the company has signed a distribution agreement for Mobeego® with Shepherd Limited. For those who have not heard about LCLP, Life Clips®, Inc is an innovative brand of products revolutionizing the way people capture, manage, enjoy, and charge the devices that share life’s moments. Life Clips is a developer and manufacturer of action cameras aimed at families, action sports enthusiasts. The company also offers innovative accessories like one time use batteries Mobeego® for mobile devices.
In the recent past, Ford proudly reported and boasted of its high profits that were a record-high based on its previous performance. However, statement from chief executive officer has now turned the party into uncertainty of the company’s future- as ripple effect is felt throughout the markets. Ford Motor Company (NYSE:F) executives have issued a stern warning that the company is spending more on incentives than anticipated.
The softening demand of vehicles in the China and other markets, and expected $1 billion at stake due to Brexit, is definitely something that has set a worrying trend.
UK Ford Market Explained
It is imperative to note that Brexit vote to depart from EU threw the company into confusion as weaker market would cost it $200 million, in 2016, and $500 million, in 2017 and 2018, respectively. This is something that company had not anticipated before-and aos, has to restrure in some way to gain ground in other markets.
Ford, CEO, Mark Fields, said that although the company is committed to following the 2016 guidelines to the letter-there are risks that make it almost impossible. He acknowledged the fact that Ford realized a 9% decline in the second quarter, of which fell short of the Wall Street estimates. It is based on this economic assumption that now Ford projects a weaker 3rd quarter and increased pressure on the second-part of the year.
CFO, Bob Shanks, earlier on, had said that he was affirming that their guidance was even much better than the previous 2015 when Ford Recorded super-results.
An Overview Of The Industry
Adam Jonas, Wall Street analyst, said that the abrupt shift in attitude by Ford is likely to be watershed for the industry. This is solely based on the fact that the US was experiencing a steady increase in discounts at the same time plateauingsales. Nevertheless, these are problems most, if not all automobile makers have to confront based on market performance.
Overall, manufacturing activities plummeted after the Brexit vote as some lenders continued squeezing interest margins. Ford Net profit was down by –9%, pretax profits in North America dwindled by -5%, and the credit pre-tax profits stood at -21%.