Ford has posted third quarter net income down by 55% on last year as its results were weighed down by higher costs due to recalls and model introductions. Net income was put at US$1bn.
However, the company stuck to its US$10.2 billion earnings (pre-tax) projection and Reuters reported that the results exceeded Wall Street expectations
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Although the company made a pre-tax profit of US$1.3bn in North America, wholesale volume was down 8% from a year ago and Ford said lower profit was driven by the launch costs of the new Super Duty, dealer stock reduction for the F-150 and costs of the door-latch recall.
Europe showed a sixth successive profitable quarter (pre-tax profit of US$138m). Ford said a strong performance In Europe was driven by cost reductions, favourable mix and balance sheet exchanges.
Ford CEO Mark Fields said: "This quarter, we delivered key elements of our growth plan by fortifying our core business with the launch of the all-new Super Duty pickup, transforming Lincoln with the new Continental and investing in emerging opportunities with the acquisition of the Chariot crowd-sourced shuttle service. Importantly, we remain on track to deliver one of our best profit years ever."
Ford's pretax operating margins were down by about half at 5.8% in North America and 3.3% worldwide.
"What's happening to the company is what's happening in North America," Chief Financial Officer Bob Shanks told Reuters.
