Ford Reduces Quarterly Dividend, Directors' Compensation
July 13, 2006Ford Declares Reduction In Quarterly Dividend; Directors Reduce Their Compensation(PR Newswire 07/13 14:31:42)
DEARBORN, Mich., July 13 /PRNewswire-FirstCall/ --
The Board of Directorsof Ford Motor Company (NYSE: F) today declared a third quarter dividend of 5 cents per share on the company's Class B and common stock. The dividend, which is payable on Sept. 1, 2006 to shareholders of record on Aug. 2, 2006,is a reduction of 5 cents per share from the dividend paid in the second quarter of 2006. In addition, the Board of Directors voluntarily reduced board member feesby half. "Our directors are well aware of the difficulties and sacrifices involved in turning around our company," said Bill Ford, chairman and chief executive officer. "They have underscored this by voting to reduce their own compensation. "
The directors also agreed that a reduction in the dividend is consistentwith a broad range of actions we are taking across the company to support andimprove the performance of our automotive operations," he said. "Strong liquidity is an important enabler of our on-going turnaround efforts and thisaction will make an important contribution." Ford added, "In the face of increasing challenges, we will continue to look for other efficiencies and savings, and we are accelerating ongoingefforts to integrate the product plans of our North America and International operations through our global product development system. The headwinds we faced at the beginning of 2006 have only become stronger, as consistently higher gasoline prices in the U.S. have caused consumer purchase preferences to shift away from SUVs and large trucks to smaller cars and cross overvehicles. While this shift plays positively to our new vehicle offerings, we must still get our costs in line in response to segment adjustments and higher commodity prices that are affecting the company. Still, we continue to see progress in many of our operations around the world, and I remain highly confident in the long-term success of the company."
7/13/2006 02:56:00 PM
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