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, boosting shares after office hours.
Ford CEO Jim Farley, who took over on Oct. 1, is tasked with completing the $ 11 billion restructuring of the No.2 U.S. automaker started under his predecessor, Jim Hackett, and has pledged greater emergency.
He also said he wanted to expand Ford’s operations in related technology areas, including software, data, fleet management and electric vehicle charging.
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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 now expects better-than-expected fourth-quarter results, along with full-year pre-tax profit of between $ 600 million and $ 1.1 billion.
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.
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On a conference call Wednesday, Farley said, “We haven’t addressed the issues that have held us back in our automotive business.” But he added that his management team had “a clear recovery plan”.
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%.
Ford started building the redesigned F-150 and the new Mustang Mach-E and Bronco Sport this month. The new full-size truck will go on sale next month and, along with the business activities, it is critical to Ford’s growth strategy.
Farley said electric vehicles, including battery-powered variants of the F-150 pickup and Transit van, were “fundamental” to the future of the company, including the Lincoln lineup and business. of Ford commercial vehicles.
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Ford shares rose 3.8% to $ 8.00 in extended trading, offsetting gains from an initial 7% after-hours hike.
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Credit Suisse analyst Dan Levy said in an earnings note: “We expect the stock to outperform in the near term; indeed, we believe that Jim Farley will drive additional urgency and responsibility at Ford. ”
“We saw much higher demand than expected,” CFO John Lawler told reporters on the conference call. “We have also seen an increase in net prices, particularly in North America.”
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Report by Ben Klayman and Paul Lienert in Detroit; Edited by Matthew Lewis