Ford Motor Q3 Financial Results Weak to Mixed

AutoInformed.com

During 2015, Ford completed 14 of 16 planned new vehicle launches. During 2014, Ford had a record 24 global launches. However, competition remains relentless, well funded and  with strong returns on investment. Ford’s capital spending needed to survive going forward is a drag on earnings.

Ford Motor Company has posted Q3 after-tax financial results, excluding special items of $1.8 billion net income or $0.45 per share based on sales of 1,596 million vehicles. The results were from North America with its pretax earnings of $2.7 billion. All of Ford’s operating regions except Asia Pacific at +$20 million posted losses: -$163 million in South America, – $163 million in Europe, – $15 million in Middle East & Africa. Ford’s results mirrored those of GM, which a week ago posted strong earnings in North America.

These Ford Motor results did not meet analyst expectations and Ford stock is languishing in the range of less than $15 per share range, down from a high of $32.60 per share in December 2008. Thus far, Ford has distributed $600 million in Q3 and $1.9 billion year-to-date in dividends to common stock holders.

The question remains whether this is a breakthrough year at Ford as the company claims or just business as usual with the F-Series – $42,000 transaction price and strong sales leadership in the U.S. being the jewels in the crown. A redesigned Super Duty version of the F-Series comes in 2016, but the pickup line continues face threats from GM and FCA with its Ram brand.

Ford reconfirmed its 2015 pre-tax profit guidance of $8.5 billion to $9.5 billion, excluding special items, with higher automotive revenue, operating margin and operating-related cash flow compared with 2014.

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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