Friday November 27th, 2015 6:50AM

Ford earns $1.6B in 3Q

By The Associated Press
DEARBORN, Mich. (AP) -- Ford's third-quarter profit eased 1 percent to $1.63 billion as European losses swamped record North American profits.

Ford Motor Co. said Tuesday its per-share net income was 41 cents, unchanged from the July-September period a year earlier. Before special items, including severance payouts, it earned 40 cents, beating Wall Street's forecast of 30 cents, according to analysts polled by FactSet.

Ford's revenue fell 3 percent to $32.1 billion as vehicle sales dropped in Europe and South America. The company exceeded Wall Street's revenue forecast of $31.5 billion largely because of North America, where revenue jumped 8 percent to $19.5 billion thanks to higher pricing and strong sales of higher-margin trucks and SUVs.

Dearborn-based Ford earned a record $2.3 billion in North America. Chief Financial Officer Bob Shanks noted that this was the third quarter in a row that the company has made more than $2 billion in North America and reported an operating margin of 10 percent or more. Ford's North American operating margin was 12 percent in the third quarter, up from 8.6 percent a year earlier.

"To me the story isn't just the results but the consistency of the results," he said.

The company lost $468 million in Europe, where sales have fallen sharply because of the troubled economy. The company hopes to stem its losses by introducing a raft of new vehicles to Europe, including the iconic Mustang sports car. It also announced last week a plan to close three European factories by 2014, affecting 6,200 employees. But in the meantime, the company expects to lose more than $1.5 billion both this year and next year in Europe. It doesn't expect to return to profitability in the region until the middle of this decade.

Shanks said Ford is being hurt by its competitors' aggressive incentive spending in Europe. Ford has raised its prices slightly in the region, which is helping its margins but hurting its sales. Ford's European market share dropped to 7.8 percent in the third quarter, down from 8.5 percent a year ago.

Ford earned $45 million in its Asia Pacific region, reversing a loss from a year ago. It's the first profit in that region since the second quarter of 2011.

Shanks said a big investment in new plants and products for Asia is paying off. Ford reached its highest-ever market share in China in the third quarter thanks to strong sales of the new Focus, which went on sale in the spring. Ford controlled 3.6 percent of the Chinese new-car market, up from 2.8 percent a year ago.
  • Associated Categories: U.S. News, Business News
© Copyright 2015
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Doctors: Blood clot located in Clinton's head
Secretary of State Hillary Rodham Clinton developed a blood clot in her head but did not suffer a stroke or neurological damage, her doctors said Monday. They say they are confident that she will make a full recovery.
3:55PM ( 2 years ago )
Illinois Sen. Kirk to return a year after stroke
Nearly a year after a stroke left him barely able to move the left side of his body, U.S. Sen. Mark Kirk is expected to climb the 45 steps to the Senate's front door this week - a walk that's significant not just for Illinois' junior senator, but also for medical researchers and hundreds of thousands of stroke patients.
3:54PM ( 2 years ago )
U.S. News
Ga. ethics legislation could end free tickets
General Assembly approval next year of a proposed ethics reform measure could endanger an important fall tradition for Georgia lawmakers - free football tickets.
6:26PM ( 2 years ago )
Abortion restrictions, tax changes loom in Ga.
Tax breaks for manufacturers and higher unemployment taxes for employers take effect with the new year in Georgia, but it remains to be seen whether the state's newest abortion restrictions will be enforced.
6:23PM ( 2 years ago )
Business News
White House undergoes Thanksgiving Day lockdown after man draped in American flag jumps fence
WASHINGTON (AP) — A man draped in an American flag climbed over the fence at the White House on Thursday, prompting a lockdown as the first family celebrated Thanksgiving.The man was immediately appre...
10:11PM ( 8 hours ago )
Obama grants reprieve to turkeys 'Honest' and 'Abe' during White House ceremony
WASHINGTON (AP) — President Barack Obama spared two turkeys named for one of the nation's most admired presidents, continuing a White House tradition that provides a refreshing sense of amusement and...
9:18PM ( 1 day ago )
The Latest: UN Security Council strongly condemns 'horrifying' attack in Mali, urges probe
BAMAKO, Mali (AP) — The latest on the attack on a hotel in the Malian capital of Bamako. (All times local):___4:55 a.m.The U.N. Security Council is condemning "the horrifying terrorist attack" at the...
10:58PM ( 6 days ago )
World leaders vow vigorous response to Paris terror spree, but little indication of next steps
ANTALYA, Turkey (AP) — World leaders vowed a vigorous response to the Islamic State group's terror spree in Paris as they opened a two-day meeting in Turkey on Sunday, with President Barack Obama call...
2:14PM ( 1 week ago )
Rash of E. coli cases in Pacific Northwest highlights problem of foodborne illnesses
SEATTLE (AP) — As Chipotle prepares to reopen its restaurants in the Pacific Northwest this week after an E. coli outbreak that sickened about 45 people, health experts say foodborne illnesses are mor...
1:40AM ( 2 weeks ago )