Wall Street Not Worried About Ford’s Cutback to F-150 Production « Detroit News Watch

DETROIT (Detroit News Watch/ AP) – Wall Street is not worried about the fire at the Ford Plant which caused cut backs on the production of the F-150.

gettyimages 866744674 Wall Street Not Worried About Ford’s Cutback to F 150 Production

Stock prices have risen since Ford announced the cutback on the truck.

Production had to b suspended after a fire damaged the Meridian Magnesium Products of America factory, which is located near Lansing. The plant manufactures the front structure that holds the radiator.

Almost 7,600 workers are temporary laid off due to the fire.

Ford’s executive Vice President and president of Global Operations said, “It’s a full team effort and we’re confident that any impacts will be short-term.

About 7,600 workers are on temporary layoff because of the fire.”

The company said it still has an ample selection of trucks at U.S. dealerships. At the current sales rate, Ford Motor Co. has enough trucks to last 84 days.

The company said Wednesday that the parts shortage and production cuts will have a short-term impact on earnings, but Ford is sticking with full-year guidance of adjusted earnings per share of $1.45 to $1.70.

Ford shares rose six cents to $11.12 in early trading Thursday.

Ford expects to continue Super Duty production at a factory in Avon Lake, Ohio, near Cleveland.

The Meridian plant in Eaton Rapids, Michigan, also supplies other automakers, but it’s not clear yet how wide the impact will be. The cause of the fire wasn’t known.

Authorities said there were explosions at the plant and two workers were hurt. The mayor of Eaton Rapids told the Lansing State Journal that the plant’s roof was destroyed. People reported feeling the blasts miles away.

© 2018 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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