Ford Motor The United Auto Workers (UAW) is demanding higher wages for its members at Ford Motor Company. Ford has warned that meeting these demands would make its labor costs significantly higher than Tesla’s, and would result in higher car prices.
The UAW has disputed Ford’s claims, but the company has also pointed out that a 12-week strike would cost an average employee $17,500 in wages and profit sharing. The UAW has an $825 million strike fund, which would provide eligible members with a weekly payment of $500 during a work stoppage.
Ford’s Financial Performance
Ford’s earnings growth in the last year was -110.98%, but improved to -0.59% this year. Analysts expect Ford’s earnings to grow modestly by 0.41% over the next five years. Revenue growth was positive at 15.93% in the last year.
Ford’s Valuation and Financial Ratios
Ford’s price-to-earnings (P/E) ratio is 12.2, its price-to-sales ratio is 0.30, and its price-to-book ratio is 1.13.
Comparison to Peers
On September 14, 2023, some of Ford’s peers experienced stock price movements. Ferrari NV (RACE) increased by 1.24%, Honda (HMC) increased by 3.20%, and Paccar Inc (PCAR) increased by 3.13%. General Motors (GM) remained unchanged.
Future Outlook
Ford’s next reporting date is scheduled for October 25, 2023. Analysts forecast an earnings per share (EPS) of $0.38 for the current quarter. In the previous year, Ford recorded an annual revenue of $158.1 billion and a net loss of $2.0 billion, resulting in a net profit margin of -1.25%.
Conclusion
The negotiations between Ford and the UAW are at a critical juncture. If Ford meets the UAW’s demands, it could have a significant impact on the company’s profitability and competitiveness. A strike would also have a negative impact on both Ford and the UAW. Investors will be closely watching the situation in the coming weeks and months.