Ford to Shareholders: We’re Getting Out of Debt One Step at a Time
Ford (NYSE:F) will be using part of its $22 billion in cash reserves to pay down $1.8 billion of debt to retire a long-term loan that matures in 2013. Ford also continues to Work with the United Auto Workers on an agreement to restore the investment grade status it lost in 2006.
At the end of June, Ford’s (NYSE:F) total debt was $14 billion. Automotive debt will be about $10 billion in 2015, much lower than the $33.6 billion at the end of 2009, according to Lewis Booth, Ford chief financial officer. “We’ve fixed the business fundamentals,” Booth said Wednesday at the UBS Frankfurt Auto Show Investor Conference. “The only real stumbling block is to get past the UAW negotiations successfully.” Ford joins Chrysler and General Motors (NYSE:GM) in talks with the UAW.
Ford’s stock (NYSE:F) is up 3.00% to $10.63 on the news. Shares are down 36.69% year to date. The stock has traded in a 52-week range between $ 9.81 and $18.97.