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.
