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The Journal Gazette

  • Associated Press Ford Motor Co. reported Thursday that earnings for the third quarter were up by 63 percent.

Friday, October 27, 2017 1:00 am

Ford earnings grow 63%

Boost in pickup sales, marketing cuts help exceed expectations

DEE-ANN DURBIN | Associated Press

DEARBORN, Mich. – Pickup trucks helped Ford Motor Co. to a strong finish in the third quarter despite lower global sales.

The Dearborn-based automaker's net income rose 63 percent, to $1.6 billion, in the July-to-September period.

The earnings of 39 cents per share handily beat Wall Street's expectations. Analysts polled by FactSet forecast earnings of 33 cents per share.

Ford's revenue rose 1 percent, to $36.45 billion. Automotive revenue of $33.6 billion also topped analysts' forecasts.

Ford also cited cost-cutting measures, including lower spending on engineering and marketing during the quarter.

“We do believe these are indications of us improving our fitness,” CEO Jim Hackett said on a conference call with analysts and media.

With those results under its belt, Ford raised its full-year earnings estimate to $1.75 to $1.85 per share, up from $1.65 to $1.85.

That compares with $1.76 per share in 2016.

Ford's overall sales fell 2 percent, to 1.5 million cars and trucks. Sales were lower in China, North America and the Mideast; they rose in Europe and South America.

But the company earned more thanks to booming sales of high-margin trucks, which got an added boost after the season's hurricanes.

U.S. sales of F-Series pickups were up 14 percent during the quarter. Ford said buyers paid an average of $45,400 per truck, up $2,800 from the same period a year ago.