Ford Motor Company (F) said earlier this week that it intended to cut about 12 000 job positions in Europe by the end of 2020, as the US company seeks to make its business in the region profitable again.
Ford shares closed higher for a second consecutive trading session in New York on Thursday. It has also been the sharpest daily surge since June 4th. The stock went up 2.93% ($0.29) to $10.20, after touching an intraday high at $10.24, or a price level not seen since May 21st ($10.31).
Shares of Ford Motor Company have risen 33.33% so far in 2019 compared with a 16.68% gain for the benchmark index, S&P 500 (SPX).
In 2018, Ford Motor Co’s stock went down 38.75%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
The planned reductions will take place at Ford’s wholly owned plants and consolidated joint ventures in Europe mostly through voluntary separation programs, the auto maker said.
Nearly 2 000 of the envisaged reductions will affect salaried workers, Ford said, while the rest will affect employees on hourly contracts or agency workers.
According to the companys announcement, production has been discontinued at three facilities in Russia, while factories in Wales and France will be shut down. At the same time, shifts at Fords facilities in Saarlouis, Germany and Valencia, Spain have been cut.
At the beginning of this year, Ford said its business would be thoroughly reviewed, which, as a result, might lead to plant closures and suspension of loss-generating vehicle lines. The companys objective is to achieve a 6% operating margin in Europe.
According to Reuters, around 51 000 people are currently employed with the auto maker in Europe.
According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.50, with a high estimate of $14.00 and a low estimate of $8.40. The median estimate represents a 2.94% upside compared to the closing price of $10.20 on June 27th.
The same media also reported that 11 out of 19 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:
Central Pivot Point – $10.03
R1 – $10.16
R2 – $10.32
R3 – $10.45
R4 – $10.57
S1 – $9.87
S2 – $9.74
S3 – $9.58
S4 – $9.41
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