Ford Motor reported a better-than-expected Wall Street, the results of the 3rd quarter, indicating that the recovery in demand for pickups in a pandemic. The company expects to make a profit for the year, but warned about possible losses in the fourth quarter.
Shares of Ford (F), decreased by 17.2% since the beginning of the year, but increased 16.7% and 51.3% over the last month and last six months (respectively), grew by 5.7% in after-hours trading on Wednesday after posting better than expected 3rd quarter and many good news.
Ford reported an increase in earnings per share for the quarter ended September 30, to $0,65, which $0.49 better than the analyst estimate of $0.16. Is 91% more compared with $0,34 in the same quarter last year and better in comparison with a loss in the previous two quarters. The sum of quarterly earnings rose to $3.6 billion compared with $1.8 billion a year earlier.
Total quarterly revenue was $37 billion, which almost matches last year’s value and significantly higher analytical forecast of $32,86 billion to See the history of quarterly revenues and profits of Ford over the past 2 years can link.
Sale Ford
Strong sales of Ford pickups in the U.S., despite the pandemic, allowed the company to surpass Wall Street estimates for revenue and increased the company’s share in the US market by 1 percentage point over the quarter to 13.6%.
According to research firm Edmunds, the average price paid by the purchasers for Ford increased to $45 599, which is 8% higher than a year earlier.
Ford profit from sales in North America totaled $3.18 billion on revenues of $25.3 bn
In China, Ford lost $58 million, but demand in the region started to recover and sales increased by 25% compared to the previous quarter.
The sum of the quarterly for the company’s losses in Europe totaled $440 million, besides Ford has faced with the risk of penalty for non-compliance of environmental regulations after the revocation of its electric plug-in hybrid Ford Kuga due to the risk of fire.
“If not for the problem of Kuga sales in Europe would bring profit in the third quarter,” said CFO Ford John Lawler.
Cash balance Ford
When the pandemic COVID-19 Ford suspended dividend payments and increased the maximum revolving credit line up to $15.4 billion According to Lawler, the automaker has fully repaid this debt, ending the third quarter with $30 billion in cash and $45 billion in reserves.
Forward-looking statements
Manual Ford said that in the next quarter (by the end of 2020), the company will release three new products: a brand-new F-150 pickup truck, electric Mustang Mach-E and compact SUV Bronco Sport.
According to Lawler, Ford expects to reduce the wholesale supply of its profitable F-150 pickups per 100 000 in the fourth quarter, as the company is steadily stepping up production of the upgraded version of the truck.
In connection with the issuance costs, the company expects that the fourth quarter will show the result of between breakeven and a loss of $500 million.
At the same time, Ford changed its earlier forecast concerning the results of the year, reversing the expectations of the first annual losses over the last decade in profit expectations by the end of 2020.
On the question of the resumption of dividend payments, the management of Ford said that “coming back to this question” in the spring.
CEO of Ford Jim Farley, who succeeded Jim Hackett, said Ford ambition be transformed into a manufacturer of electric vehicles: “We don’t want to be among the many automakers who switch to electric vehicles, we want to lead the electrical changes.”
Commenting on the report on Wednesday, Farley said, “We have not addressed the issues that kept us in our automotive business”, but added that his administration has “a clear plan for recovery.”
However, some analysts have questioned the ability of Ford profitably go to the line of products focused on electric vehicles, although welcome such a long-term transition.
Credit Suisse analyst Dan levy wrote after the Ford report: “We expect that in the short term, Ford will increase. We believe that Jim Farley will enhance transparency and accountability in the presentation of data to investors”.
