A higher pricing strategy which drove sales higher, mixed with strong demand for crossovers and trucks, helped Ford post its 10th consecutive quarterly profit, a 2 percent decrease from last year to $1.65 billion. Around $1.6 billion of Ford’s profit came from its North American operations, a figure which is essentially unchanged from a year ago.
According to its officials, the second U.S. carmaker sold a total 1.3 million vehicles in the third quarter, up 93,000 units from a year ago, with every one of its business segments reporting increases.
Ford continued to strengthen its balance sheet in the third quarter, paring debt in its automotive division by $1.3 billion, although it still owes $12.7 billion, while it endured a $350 million non-cash charge over commodity hedging. Still, the automaker says that commodity costs will be $3.8 billion higher this year than last, although that’s down from the $4 billion it predicted early this year.
“We remain well on track to deliver improved full year pre-tax operating profit and Automotive operating-related cash flow, consistent with our guidance,” said Lewis Booth, Ford executive vice president and chief financial officer.
Through the first three quarters of the year, Ford has posted $6.6 billion in profits, a 4 percent increase over the same period last year. Revenue was up 14 percent to $33.1 billion from $29 billion.
For the fourth quarter, Ford expects total company production to be about 1.4 million units, up 22,000 units from a year ago.