The second largest US automaker announced its quarterly profit jumped sharply, thanks to ongoing record performance across its North American business, but the shares still took a small dive because Wall Street predictions were not achieved.
According to the company, net income soared to $1.9 billion in the third quarter from $1.1 billion during the same period in 2014. After taxes were paid, earnings excluding one-time items were 45 cents a share, just short of the average analysts’ estimates. Ford managers also said the year-end drive sales would have higher promotions and the North American profit margins could be hit during the remaining quarter. Just like its larger Detroit peer and rival General Motors, Ford earned the most of its profits via sport utility vehicle, crossover and pickup sales in the United States – with average transaction prices for the F- Series top selling truck up around $2,000 to $42,000 in the latest quarter, commented chief financial officer Bob Shanks.
Ford had an automotive revenue of $35.8 billion during the third quarter, with 66 percent being derived from the North American performance. The top executive added that some of the most promising emerging markets for the company – such as Brazil – have turned into money losing markets but the company remained optimistic about China, the world’s largest auto market, predicting a record tally for the remaining months for its Asia-Pacific business. The full year forecast for pre-tax profit of $8.5 billion to $9.5 billion for 2015 remained unchanged, with North American profit margins at the higher end of the envisioned 8.5 percent to 9.5 percent spectrum.