Ford Motor Posts Q3 Profits of $2.6 Billion but Income Off

Ford Motor Company [NYSE: F] reported a Q3 profit of $2.6 billion based largely on sales and financing in North America with some contributions from other regions. This was $426 million higher than a year ago. Third quarter earnings per share of 45 cents was 5 cents per share higher than a year ago.

However, net income for the third quarter at $1.3 billion, or 31 cents per share, was down -$359 million, or -10 cents per share, compared with a year ago due to pre-tax charges of $498 million, including $250 million for firing workers in Europe as part of the company’s “transformation plan.” There was also a -$145 million charge for Ford’s U.S. salaried retiree voluntary lump sum payout program as part of the company’s attempt to remove retirement benefits from its balance sheet.

During the first nine months, Ford’s pre-tax profit was $7.3 billion, an improvement of $1 billion compared with a year ago. Net income was $4.1 billion.

“Ford’s record results in the third quarter show the strength of our One Ford plan around the world,” said Alan Mulally, Ford president and CEO, whose future appears to be limited. During the quarter, Ford contributed $1.1 billion to its under-funded global funded pension plans, which included about $700 million of discretionary payments to its U.S. funded plans.

Ford now predicts that total company pre-tax profit to be higher than 2012, improved from prior guidance of equal to or higher than 2012. Ford also now expects Automotive operating margin to be higher than last year rather than about equal. Ford continues to expect Automotive operating-related cash flow to be substantially higher than 2012.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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