Ford Motor Co.
) announced that it will start redeeming all the 7.50%
outstanding notes due June 10, 2043 from February 4, 2013. The
notes worth $690.0 million were issued by the company on June 25,
2003 and $592.7 million was outstanding.
With respect to the terms of the notes, the company will redeem
100% of the principal amount outstanding together with the
accrued and unpaid interest. For example, for each $25 in
principal amount, the redemption price would be $25 plus accrued
and unpaid interest of 28 cents. The Bank of New York Mellon will
act as an agent for the transaction.
Ford posted a 17.6% rise in earnings per share to 40 cents in the
third quarter of the year from 34 cents a year ago, driven by
impressive results in its North American operation and, to some
extent, its Asian operation. With this, the company has also
surpassed the Zacks Consensus Estimate by 10 cents per share.
Total profit rose 15.6% to $1.6 billion from $1.4 billion a year
However, total revenue in the quarter slid 3.0% to $32.1 billion
due to lower revenues in South America, Europe and Financial
Services operations that offset the marginal improvement in
revenues in North America and Asia. However, revenues were higher
than the Zacks Consensus Estimate of $31.0 billion for the
Ford had cash and marketable securities of $24.1 billion as of
September 30, 2012, up from $20.8 billion in the corresponding
period a year ago. Total Automotive debt remained unchanged year
over year at $14.2 billion at the end of the quarter.
Michigan-based Ford is one of the largest automobile producers in
the world. The company operates in two segments: Automotive and
Financial services. Although the company's primary selling ground
is the U.S.; Europe, South America and the Asia-Pacific
constitute its other major markets.
Ford, whose cross-town rivals include
General Motors Company
), maintains a Zacks #3 Rank, which translates into a short-term
(1 to 3 months) Hold rating. Consequently, we have a Neutral
recommendation on the stock for the long-term (more than 6
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