Ford Says Profits Will Improve In 2018, Declares Special Dividend

By Jeremy C. Owens Markets MarketWatch Pulse

Ford Motor Co. shares gained slightly in late trading Tuesday after the carmaker announced a special dividend and gave updates on its forecasts. Ahead of a presentation at the Deutsche Bank Global Auto Industry Conference, Ford revealed that it will pay a special dividend of 5 cents a share in the first quarter, along with its regular dividend of 15 cents a share, which is the same as last year's regular payment. Ford maintained guidance for "somewhat lower" pre-tax profit in 2017 than 2016, due to investments in technology, but said it expected profitability to improve in 2018. Ford said it still expects $10.2 billion in pre-tax profit for 2016, with an adjusted effective tax rate in the low 30% range. Ford stock, which closed with a 1.7% gain at $12.85, rose to $12.93 in late trading.

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