Ford’s Profit Rises 11% on Trucks, SUVs
Ford Motor Co. on Monday said its third-quarter earnings rose 11% to $1.14 billion, or 90 cents a share, driven by U.S. sales of high-profit pickup trucks and sport-utility vehicles.
The results exceeded the average estimate of 85 cents from analysts surveyed by First Call Corp. and forecasts of 88 cents published on the Internet. Ford had net income of $1 billion, or 80 cents, a year ago.
Revenue grew 16% to $38 billion, as Ford’s acquisition of Swedish auto maker Volvo gave sales a lift.
Sales of the F-Series pickup and Expedition sport-utility are surging, buoyed by the lowest unemployment in 29 years and the longest U.S. peacetime economic expansion.
The truck demand helped Ford overcome losses in South America and Europe. The company moved closer to Chief Executive Jacques Nasser’s 1999 goal of cutting global auto-making costs by $1 billion.
Ford spent $300 million less than it did in the year-earlier quarter, bringing its 1999 cost cuts to $700 million.
It was the 14th straight quarter of improved earnings for Ford, which has taken advantage of the industry’s record-setting year for car and truck sales. The company also reached a pact with the United Auto Workers this month without a costly work stoppage.
“Nasser’s done a bang-up job,†said J.P. Morgan Securities analyst David Bradley, who has a “buy†rating on the shares. “Sure, Americans are buying trucks, but he’s the author of Ford’s strategy to have trucks available.â€
Ford narrowed its loss in Europe to $171 million from $273 million a year earlier. It lost $72 million in South America, more than the year-earlier loss of $44 million.
Ford’s results were released a few days after General Motors Corp. reported a profit for the third quarter, recovering from a loss a year ago. DaimlerChrysler will report its earnings next week.
Shares of Ford rose $1.50 to close at $52.06 on the New York Stock Exchange.
