Ford beats on earnings, raises the lower end of its forecast

Marco Green
October 26, 2017

Ford said North America continues to generate most of the profit, posting earnings before taxes of $1.7 billion, up about $400 million, or 33%, over the same period a year ago. A tax benefit of $426 million this year added $240 million to the quarter's net income. The company's effective tax rate in 2016 was 32.2%.

The biggest institutional shareholders in Ford Motor Company include Vanguard Group Inc which owns 264 million shares in the company valued at $2.96 B million.

Ford Motor Credit Company LLC reported third-quarter net income of $414 million, higher than $386 million a year ago. Ford said buyers paid an average of $45,400 per truck, up $2,800 from the same period a year ago.

The third quarter was Ford's first full quarter with new CEO Jim Hackett at the helm. But we know that we must accelerate that progress in the near term, while taking the necessary steps to fundamentally redesign our business operations to be more fit for the long term.

Ford's revenue rose 1 percent to $36.45 billion. Pretax profit rose by $600 million to $1.7 billion.

Ford has faced a series of challenges this year, including shortages its top-selling new Fiesta in Europe, carbon-monoxide issues involving police vehicles, recalls and a CEO facing Wall Street analysts hungry for specifics related to cost-cutting and strategies related to autonomous vehicle technology and ride-sharing. Operating margin rose by 2.3 points to 8.1%.

On average, 20 analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter.

-Earnings (Q3): $1.73 Bln. vs. $0.96 Bln. past year. -Revenue Change (Y-o-Y): 1.4%. The company says better deals with suppliers, more shared parts and simpler designs will help it reduce material costs, while decreasing product development time will help with engineering costs. Previously it had looked for $1.65 to $1.85. The consensus 12-month price target on the stock was $12.27 before this morning's report.

Other reports by Click Lancashire

Discuss This Article