partlycloudy
Friday February 12th, 2016 9:10AM

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 2016 AccessWDUN.com
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 ( 3 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 ( 3 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 ( 3 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 ( 3 years ago )
Business News
New details about the possible effects of the Zika virus on the fetal brain are emerging
WASHINGTON (AP) — New details about the possible effects of the Zika virus on the fetal brain emerged Wednesday as U.S. health officials say mosquito eradication here and abroad is key to protect preg...
6:22PM ( 1 day ago )
President Barack Obama is asking Congress for more than $1.8 billion in emergency funding to help fight the Zika virus
WASHINGTON (AP) — President Barack Obama is asking Congress for more than $1.8 billion in emergency funding to fight the Zika virus and the mosquitoes that spread it here and abroad, but says "there s...
10:40PM ( 3 days ago )
Search for Missouri couple wanted for crimes across the South, including Ga., ends with one suspect dead and the other wounded
A weeklong search for a Missouri couple wanted in a series of robberies and abductions across the South ended with one suspect dead and the other wounded Friday, after authorities say they chased the pair across the highway and through a rural neighborhood and exchanged gunfire with them in Florida's Panhandle.
By The Associated Press
9:57PM ( 6 days ago )
Cheap oil will be sticking around for a while, buoying consumers, frustrating oil producers
Cheap oil will be sticking around for a while.That reality is wreaking havoc and causing uncertainty for some governments and businesses, while creating financial windfalls for others. Less expensive...
6:18PM ( 1 week ago )
Cruz (R) expected to claim conservative Iowa caucus victory, with Clinton (D) and Sanders (D) deadlocked among liberal vote
Texas Sen. Ted Cruz swept to victory in Iowa's Republican caucuses Monday, overcoming billionaire Donald Trump and Florida Sen. Marco Rubio. Among Democrats, Hillary Clinton and Bernie Sanders were deadlocked in a tight race.
By The Associated Press
10:55PM ( 1 week ago )