Cars and Drivers

Ford on Track for New High Following Earnings

2014 F-150
Source: Courtesy Ford Motor Co.
Ford Motor Co. (NYSE: F) reported third-quarter 2013 results before markets opened Thursday morning. The automaker posted adjusted diluted earnings per share (EPS) of $0.45 on revenues of $36.0 billion. In the same period a year ago, the company reported EPS of $0.41 on revenues of $32.1 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.37 and $33.9 billion in revenues.

On a GAAP basis, Ford reported EPS of $0.31, which includes a $250 million charge for restructuring in Europe, a $145 million in a lump-sum payment to the U.S. pension program and $103 million in foreign currency translation effects.

Ford essentially reiterated its forecast for the year, calling for pre-tax profit to be “higher” than the $8 billion in profit booked in 2012. Operating margin also is expected to be “higher” than 2012’s reading of 5.3%, and automotive cash flow is expected to be “substantially higher” than last year’s $3.4 billion. The consensus analysts’ estimate for 2013 EPS has risen from $1.43 at the end of the first quarter to $1.55.

The company’s CEO:

Ford’s record results in the third quarter show the strength of our One Ford plan around the world. Working together, we remain committed to serving customers in all markets with a full family of vehicles, offering the very best quality, fuel efficiency, safety, smart design and value.

Ford continues to expect full-year operating margins in North America to come in around 10%.

Expected results in South America continue to be about break-even for the full year. Ford’s operating margin for the quarter rose to 5.6%, from 0.4% a year ago, and for the first nine months of the fiscal year the company’s margin rose to 1.1%.

Ford expects its pre-tax loss in Europe to be smaller than last year’s. Through the first nine months of 2013, the company’s operating loss in Europe is $1.04 billion, compared with $1.02 billion in the same period a year ago. The operating margin remained -3.5% in the third quarter.

The company continues to expect its Asia/Pacific/Africa business to be profitable in 2013. Operating margin in the third quarter rose by 2.7 points to 4.4%.

Ford shares were up about 3.6% in premarket trading to $18.16, above the 52-week range of $10.01 to $17.77. Thomson Reuters had a consensus analyst price target of around $19.20 before this report.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.