Selling Luxury Brands Will Cut Losses

Article Excerpt

FORD MOTOR CO. $7.36 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.0 billion; Market cap: $14.7 billion; WSSF Rating: Extra risk) aims to sell its struggling Jaguar and Land Rover luxury brands in the next few months. It has already sold its Aston Martin operations, but plans to hang on to its Volvo division. Ford hopes to improve Volvo’s profitability with a new restructuring plan, including sharing product development and purchasing with Ford’s core operations. Ford’s new contract with its main auto workers union should cut its long-term healthcare costs. The company is also making progress restructuring its North American auto business. In the third quarter of 2007, Ford cut its losses before one-time items to $0.01 a share from $0.45 a year earlier. Revenue rose 10.8%, to $41.1 billion from $37.1 billion, thanks to higher overall prices and stronger demand for more expensive cars. Ford is still a hold. hold…