Ford beats forecasts with strong Q3 profit
Ford reported a net profit of $2.4 billion for the third quarter up by $2 billion from a year ago on strong sales.
Phoebe Wall Howard from the Detroit Free Press reported:
Ford Motor Co., fresh with new leadership and touting an upcoming lineup of hot new vehicles, reported a $2.4 billion net income Wednesday for the third quarter of the year, an improvement of $2 billion from the same quarter last year.
Ford reported that earnings in the quarter before interest and taxes — adjusted EBIT — was $3.6 billion, up from the $1.8 billion reported for the same period in 2019 and $1.7 billion a year earlier. EBIT does not include restructuring and other charges.
Chris Isidore from CNN wrote:
The company, along with other automakers, had posted losses in the first half of this year as the Covid-19 pandemic caused shutdowns of auto plants and cut deeply into car sales across the globe. Ford’s net loss excluding items stood at $2.3 billion for the first six months of 2020.
Sales rebounded strongly in the third quarter, though not quite to the levels reported a year ago, as the number of vehicles Ford sold to dealers worldwide fell 5% to 1.18 million compared to a year ago. But automotive revenue at the company still managed to increase 2% to $37 billion, due to strong pricing for the vehicles it did sell. The improved pricing added $900 million to the company’s bottom line.
CNBC’s Michael Wayland noted:
Due to costs related to new or redesigned vehicle launches toward the end of the year, the company forecast adjusted earnings for the fourth quarter to be between break even and a $500 million loss. That would keep the company in the black for the year.
Ford expects a 100,000 reduction in wholesale shipments of its profitable F-150 pickups in the fourth quarter as the company steadily ramps up production of a redesigned version of the truck, Lawler said.