Ford Beats Sales, Profit Estimates While Dropping 2020 Target
- Dropping the margin target was a quick change of heart for Chief Executive Officer Jim Hackett -- the target had just been set in the first quarter. Ford blames rising costs, uncertainty for the industry and worsening conditions in Europe and China.
- The jump to $34.7 billion in automotive revenue beat estimates but was mainly because of buyers’ appetite for more expensive vehicles with higher trim levels.
- The cash cow F-Series pickup continued to haul in the bulk of the profit as the average purchase prices rise. Ford announced plans in April to stop selling sedans in America.
- There were losses again in Europe, where the U.K.’s planned move out of the European Union has caused disruption, and in Asia Pacific, where Ford’s China lineup of cars is aging and it has too few SUVs to sell.
- Ford’s nascent business in self-driving cars and other mobility services lost $196 million in the third quarter after a $181 million loss in the second quarter. The automaker began breaking out results for its mobility unit this year.
- North American pretax profit was $2 billion, up about $100 million from the year-earlier quarter.
- Company statement.
©2018 Bloomberg L.P.