FORD MOTOR COMPANY DETROIT (Reuters) - Ford Motor Co (>> Ford Motor Company) Chief Financial Officer Bob Shanks told Reuters on Tuesday that the company is largely done repairing its balance sheet, and can now look at using growing cash reserves to invest in growth or increase shareholder returns.
Shanks said the company is not ready to offer specific plans, but he did not rule out hiking dividends, share buybacks, or making acquisitions or alliances to secure advanced technology or expand in new businesses such as ride sharing.
Despite concerns among some investors that the auto cycle is near a peak, Ford sees opportunities to invest in growth, Shanks said. "I would want to find opportunities to do that in not only what I would call the core business but as we explore opportunities in what we call Ford Smart Mobility," he said.
Ford earlier this year outlined ambitious plans to expand its reach in autonomous driving technology, vehicle connectivity, the use of "big data" and alternatives to traditional car ownership.
Shanks said he has "nothing in mind" at this time, but added that this expansion could occur organically as well as through alliances with other companies and he did not rule out purchasing smaller or startup companies.
"I wouldn’t say no if we thought there were really good opportunities that fit within an overall framework," Shanks said. "It would have to be something that very specifically had a discreet positive role to play in enabling us to deliver value in that space.”
If Ford increased distributions to shareholders, Shanks said, it "would either be through an increase in the regular dividend if I thought that was sustainable through a business cycle, a supplemental dividend or potential share buybacks.”
Ford said on Tuesday it distributed $600 million to shareholders through dividends in the third quarter, and $1.9 billion in the year's first nine months.
Ford shares were down 5 percent on Tuesday afternoon, in part because analysts said the company's costs are expected to be higher than they had expected.
"We’ve got cost increases, because we are investing in the business," Shanks said.
(Editing by Jeffrey Benkoe and Christian Plumb)
By Bernie Woodall and Joseph White
