Ford posts stronger-than-expected quarterly profit, expects full-year pretax profit

In this news, we discuss the Ford posts stronger-than-expected quarterly profit, expects full-year pretax profit.

DETROIT (Reuters) – Ford Motor Co on Wednesday posted better-than-expected quarterly profit on strong U.S. demand for pickup trucks and SUVs, and forecast full-year pre-tax profit instead of loss, pushing shares higher nearly 6% after. hours of trading.

Ford reported third-quarter net income of $ 2.4 billion, or 60 cents per share, compared with $ 400 million, or 11 cents per share, a year earlier.

Excluding items, Ford’s profit was $ 3.6 billion, or 65 cents per share, exceeding the 19 cents expected by analysts polled by Refinitiv.

The company said it expected better-than-expected earnings before interest and taxes for the fourth quarter, ranging between breakeven and a loss of $ 500 million, as well as “positive adjusted EBIT for the full year 2020” .

Ford said in July it expected pre-tax profit of between $ 500 million and $ 1.5 billion in the third quarter and a loss for the fourth quarter as well as the full year.

The automaker has fully repaid $ 15 billion in revolving credit loans and ended the quarter with nearly $ 30 billion in cash and over $ 45 billion in cash.

The company’s adjusted EBIT margin in the quarter was 9.7%, with an annual target of 8%. Ford’s net margin over the period was 6.4%.

Earlier Wednesday, Italian-American automaker Fiat Chrysler announced that its operating profit rose 26% to a record 2.544 billion euros in North America, with a record margin of 13.8%.

Ford said key new product launches in the fourth quarter – a redesigned F-150 pickup, the Mustang Mach-E SUV and the Bronco Sport SUV – remain “on track.”

Ford shares rose 5.7% to $ 8.15 in extended trading.

“We saw much higher demand than expected,” CFO John Lawler told reporters on a conference call. “We have also seen an increase in net prices, particularly in North America.”

Report by Ben Klayman and Paul Lienert in Detroit; Edited by Matthew Lewis

Original © Thomson Reuters

Originally posted 2020-10-29 03:06:10.

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