Ford’s third-quarter profit grows slower image

In line with the forecast showed during the last investor meeting, the second-largest US automaker reported its third quarter profit was lower than in 2013, with a 34% drop.

Still, the carmaker managed to bring home some profits, with earnings of 24 cents per share (without one-time charges), managing to surpass the average forecast of 19 cents a share from a consensus of analysts interviewed by Reuters.

The company managed again to post a strong push in North America, which compensated in part for losses in other regions, but analysts and investors were not impressed because the overall revenue also slid. With a 3% drop, third-quarter revenue was at $34.9 billion and Ford said the slip was due to lower vehicle sales, mounting recall charges and supplier shortages that slowed production.

According to executives, the F-150 aluminum pickup launch is moving on schedule, and around half of the planned 23 model introductions for the year have been completed so far. According to the automaker, the revenue fall was largely related to the planned shutdown of the truck factory in Dearborn, Michigan that caters for the production of the new F-150. Ford managed to post a third-quarter profit margin of 7.1% in its home region – although the figure was lower than what Detroit rival General Motors posted for the same period – 9.5%.

Via Reuters