Ford Posts Most Profitable Quarter in North America, Driven By Truck Sales
Ford Motor Company said Tuesday that the company posted its most profitable third quarter driven by pickup sales in North America.
According to Ford CEO Mark Fields, F-150 transaction prices were up $2,800 for the third quarter in 2015 compared to the same period last year and dealers were reporting full stocks of trucks, up from this year’s shortage.
Fields stopped short of saying the new F-150 was more profitable than the outgoing generation, but said the truck was contributing — not taking away from — the company’s record profit. Representatives said high-margin cars such as the Edge, Mustang and Explorer also contributed to pre-tax profit of $2.7 billion last quarter.
Automotive News reported that Ford’s U.S. sales increased 11 percent in the third quarter, beating the industry’s 6.2 percent average.
The company reported a $1.9 billion net income for the three months ending in September, more than double last year’s result from the same period. Global revenue was up 9 percent for the automaker
Ford’s operating margins in North America rose to 11.3 percent — much higher than 7.3 percent for the third quarter last year — and helped carry losses in other worldwide markets. Worldwide, the company said its market share increased 0.3 percent to 7.6 percent.
The automaker narrowed its losses worldwide in South America, Europe and Middle East and Africa. Ford posted a small gain in Asia, which it said would deliver a better-than-expected year, despite an economic slowdown in China.
The company said it expects a slower fourth quarter this year and would adjust its overall profitability this year from 8.5 to 9.5 percent.
Representatives from Ford said contract negotiations would be reflected in fourth quarter financials, including one-time “ratification” bonuses that the company may pay workers, like Fiat Chrysler Automobiles and General Motors.
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I can believe that. The F-150 is quite popular, and I think it set the bar a bit higher for domestic trucks than what GM and FCA have met. My friend and I went to one particular Ford dealership, and all they had were F-150s and Roush Mustangs. (The salesman wasn't at all interested in even *trying* to sell him the CPO Fusion Energi that he'd made an appointment for.)
Funny as hell because Ford stock tanked today and lost 5%.