Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Ford Motor Company    F

FORD MOTOR COMPANY

(F)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Volvo Cars drops IPO due to trade tensions and auto stocks downturn

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/10/2018 | 10:32am EST
FILE PHOTO: Workers assemble a car at the Volvo Cars manufacturing plant in Daqing

BEIJING/PARIS (Reuters) - Volvo Cars and its Chinese owner Geely have postponed plans to float shares in the Swedish carmaker, blaming trade tensions and a downturn in automotive stocks.

But while Volvo's [IPO-VOLVO.ST] plans for a Stockholm listing were delayed indefinitely, Britain's Aston Martin vowed to push ahead with its own initial public offering.

"We've come to the conclusion that the timing is not optimal for an IPO right now," Volvo Chief Executive Hakan Samuelsson told Reuters by telephone on Monday, confirming a decision which was first reported by the Financial Times.

Volvo and its Chinese parent had been discussing an IPO to value the carmaker at between $16 billion (12.28 billion pounds) and $30 billion, sources have previously said. The company said a listing was still possible in the future.

But Samuelsson said IPO prospects had dimmed with the business cycle, amid a broad-based decline in automotive shares that has dragged the Stoxx 600 Autos & Parts index <.SXAP> 15 percent lower so far this year.

Even before the recent sell-off, however, some observers doubted the $30 billion upper end of Volvo's target valuation.

"We had expressed our reservations concerning lofty valuation ambitions before," Evercore ISI analyst Arndt Ellinghorst said on Monday. "Trade wars are just one red flag."

Washington's escalating trade spat with Beijing and tensions with Europe have rattled automotive investors, adding volatility to market outlooks.

Volvo is less exposed than its German premium rivals to U.S.-China tariffs, however, and has said it will juggle production of its XC60 SUV to reduce their impact.

It delivered 61,480 cars in China in the first half, a fraction of BMW's or Audi's sales.

Geely, which paid Ford Motor Co $1.8 billion for Volvo in 2010, also has stakes in Mercedes-Benz parent Daimler, truckmaker AB Volvo and Lotus.

CHINESE INROADS

Geely and its boss Li Shufu had concluded that Volvo should make deeper inroads into the Chinese market before listing, a person familiar with the group's thinking told Reuters.

And Volvo, which is developing Polestar as an electrified performance brand and owns a stake in Geely stablemate Lynk&Co, has "other alternatives" to raise finance, Samuelsson said.

The IPO postponement reflects bigger concerns about "price development after a potential IPO" rather than about the initial valuation, the CEO added, citing sensitivities over the prevalence of public pension funds among Swedish investors.

"What made me nervous especially was leaving headroom for investors" amid growing market uncertainties, he said.

Swedish telecoms operator Telia drew public wrath after its shares sank from their 2000 debut. For a domestic car brand, such a setback could dent both image and sales.

Samuelsson also said that Aston Martin, as a pure luxury play, was "more like Ferrari" - whose widely envied listing came close to late boss Sergio Marchionne's 10-billion-euro target valuation. Like Volvo, Aston Martin was once owned by Ford.

"I wish them luck with their IPO," Samuelsson said.

(Reporting by Norihiko Shirouzu and Laurence Frost; Additional reporting by Esha Vaish in Stockholm and Mekhla Raina in Bengaluru; editing by Jason Neely and Alexander Smith)

By Norihiko Shirouzu and Laurence Frost

Stocks mentioned in the article
ChangeLast1st jan.
BAYERISCHE MOTOREN WERKE -0.25% 70.59 Delayed Quote.-0.16%
DAIMLER -0.41% 50.4 Delayed Quote.9.78%
FORD MOTOR COMPANY 1.43% 8.54 Delayed Quote.11.63%
STOXX EUROPE 600 0.23% 369.78 Delayed Quote.9.27%
TELIA COMPANY 0.25% 39.83 Delayed Quote.-5.36%
VOLKSWAGEN -1.15% 142.74 Delayed Quote.2.75%
VOLVO -0.59% 134.45 Delayed Quote.16.65%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FORD MOTOR COMPANY
12:15pFACTBOX - UK CAR PRODUCTION : Who builds what and where?
RE
09:42aFORD MOTOR : Names New Leader of Global Government Relations
PU
02/17FORD MOTOR : Alabama jury awards $152 million in Ford Explorer rollover case
RE
02/15FORD MOTOR COMPANY : Recognised as Global Sustainability Leader in Water and Cli..
AQ
02/15European car sales drop 4.6 percent in January - ACEA
RE
02/14Canada's Ontario commits C$40 million to bolstering auto sector
RE
02/14FORD MOTOR : CFO to retire - CNBC
RE
02/14FORD MOTOR : launches shared mobility app in Pune, to help 3.5 lakh commuters da..
AQ
02/14FORD MOTOR : DescrptionStatement of Ownership
PU
02/14GLOBAL MARKETS LIVE : Google, Airbus, Volkswagen, Cisco…
More news
Financials ($)
Sales 2019 146 B
EBIT 2019 7 124 M
Net income 2019 4 895 M
Finance 2019 8 762 M
Yield 2019 7,03%
P/E ratio 2019 7,02
P/E ratio 2020 6,10
EV / Sales 2019 0,17x
EV / Sales 2020 0,17x
Capitalization 33 971 M
Chart FORD MOTOR COMPANY
Duration : Period :
Ford Motor Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FORD MOTOR COMPANY
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 9,46 $
Spread / Average Target 11%
EPS Revisions
Managers
NameTitle
James P. Hackett President, Chief Executive Officer & Director
William Clay Ford Executive Chairman
Joseph R. Hinrichs Executive VP & President-Global Operation
Robert L. Shanks Chief Financial Officer & Executive Vice President
Jeff Lemmer Vice President & COO-Information Technology
Sector and Competitors
1st jan.Capitalization (M$)
FORD MOTOR COMPANY11.63%33 971
TOYOTA MOTOR CORP7.69%195 068
VOLKSWAGEN2.75%82 787
DAIMLER9.78%61 151
GENERAL MOTORS CORPORATION16.86%55 097
BAYERISCHE MOTOREN WERKE-0.16%52 000