A strong demand for trucks of Ford helped the United States based auto major to register a much larger profit than was being expected by the Wall Street which helped the company to return to profitability.
Excluding special items, the company earned $2.6 billion which is almost double of what the company had earned a year ago on that basis which was at $1.4 billion. And that number was well above what the analysts had forecast for the quarter at $932 million.
With the novel coronavirus pandemic resulting in shutdowns of auto plants and a severe slump in car sale all across the world, losses in the first half of this year were reported by Ford as well as all of the other major auto makers.
For the first six months of 2020, Ford's net loss excluding items stood at $2.3 billion.
Even though not to the levels reached a year ago, Ford recorded a strong rebound in sales in the third quarter. In the third quarter, there was a 5 per cent year on year drop in the number of vehicles Ford sold to dealers worldwide at 1.18 million.
But strong pricing for the vehicles that the company did sell helped Ford to manage out a 2 per cent growth in automotive revenue at $37 billion. $900 million to the company's bottom line was added because of the improved pricing of its vehicles.
Ford’s results indicate possibility of an overall rebound for the global auto industry.
Since the beginning of June, a growth of 25 per cent has been recorded for the share prices of Ford, as well as its rivals General Motors and Fiat Chrysler. Record earnings were also reported by Fiat Chrysler.
Even though all of the three US auto makers suffered because of an overall market sell-off because of concerns of a resurgence of Covid-19 infections, stocks of Ford were lifted by more than 6 per cent in after-hours trading because of the much better than expected results. That positivity spilled onto the stocks of GM as well. GM is due to report results next week.
However, while reporting estimate beating performances, Ford also warned that the fourth quarter will place the company in more difficult position and its profits could even be in the red when measured on an earnings before interest and taxes (EBIT) basis.
The company cited a number of reasons for this which included lower earnings from Ford Credit, expected higher expenses because of activities related to the upcoming launches of the Mustang Mach-E and Bronco Sport and investment needed for ramping up production of a new version of the F-150 pickup.
The company however did claim that it should be profitable for the full year on an EBIT basis.
(Source:www.cnn.com)
Excluding special items, the company earned $2.6 billion which is almost double of what the company had earned a year ago on that basis which was at $1.4 billion. And that number was well above what the analysts had forecast for the quarter at $932 million.
With the novel coronavirus pandemic resulting in shutdowns of auto plants and a severe slump in car sale all across the world, losses in the first half of this year were reported by Ford as well as all of the other major auto makers.
For the first six months of 2020, Ford's net loss excluding items stood at $2.3 billion.
Even though not to the levels reached a year ago, Ford recorded a strong rebound in sales in the third quarter. In the third quarter, there was a 5 per cent year on year drop in the number of vehicles Ford sold to dealers worldwide at 1.18 million.
But strong pricing for the vehicles that the company did sell helped Ford to manage out a 2 per cent growth in automotive revenue at $37 billion. $900 million to the company's bottom line was added because of the improved pricing of its vehicles.
Ford’s results indicate possibility of an overall rebound for the global auto industry.
Since the beginning of June, a growth of 25 per cent has been recorded for the share prices of Ford, as well as its rivals General Motors and Fiat Chrysler. Record earnings were also reported by Fiat Chrysler.
Even though all of the three US auto makers suffered because of an overall market sell-off because of concerns of a resurgence of Covid-19 infections, stocks of Ford were lifted by more than 6 per cent in after-hours trading because of the much better than expected results. That positivity spilled onto the stocks of GM as well. GM is due to report results next week.
However, while reporting estimate beating performances, Ford also warned that the fourth quarter will place the company in more difficult position and its profits could even be in the red when measured on an earnings before interest and taxes (EBIT) basis.
The company cited a number of reasons for this which included lower earnings from Ford Credit, expected higher expenses because of activities related to the upcoming launches of the Mustang Mach-E and Bronco Sport and investment needed for ramping up production of a new version of the F-150 pickup.
The company however did claim that it should be profitable for the full year on an EBIT basis.
(Source:www.cnn.com)
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