Welcome to the Daily 5 report for Friday, Oct. 17. TGIF!
General Motors and Ford Motor Co. are poised to report a whole lot of contradictory third-quarter results next week. Lots of losses coupled with strong sales gains.
Both companies will have to be careful with their messages to Wall Street because the conflicting signals could move their stocks up or down noticeably.
Lindsay VanHulle previews the two automakers' results in this story today.
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Most of the bad news for GM and Ford has already been reported, so it's a good bet they will focus on the good news when they report third-quarter results.
GM has already said it will take a $1.6 billion hit for restructuring its electric vehicles business. Ford hasn't disclosed its exposure to an aluminum disruption at supplier Novelis, but analysts predict it'll cost the company $1 billion.
And we already know both companies face additional liabilities for U.S. tariffs on Canada and Mexico.
Still, there's plenty of upside to report.
GM reported U.S. sales of 708,360 light vehicles from July through September, led by a 25 percent gain at Cadillac, which logged its best quarter since 2013 with its expanded EV lineup, VanHulle reported.
Ford's third-quarter U.S. light vehicle sales rose 8.5 percent behind record deliveries of electric vehicles as customers rushed to take advantage of the expiring federal tax credit, Mike Martinez wrote earlier this month.
So far, investors are cutting both companies some slack with Ford shares approaching $12 along with an appealing 5.1 percent annual dividend yield. GM shares are trading near $60 with a 1 percent annual dividend.
So the sky isn't falling yet on GM and Ford, but there's plenty of worries ahead.
Besides aluminum shortages impacting Ford, Stellantis and probably others, there's new potential for yet another chip disruption stemming from an international trade fight involving supplier Nexperia. It's complicated, but the bottom line is that BMW, Volkswagen and Stellantis are among the automakers that could be impacted if this dispute doesn't get resolved by the Netherlands and China.
Nexperia's chips are important in the production of various vehicles and components.
Meanwhile, Porsche has named Michael Leiters, the former CEO of McLaren, as a potential successor to CEO Oliver Blume. Our friends from Reuters tell us more about Leiters in this story.
That's it for now. Have a great weekend. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
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