Ford reported a big jump in 3rd quarter profits on Wednesday, October 28, pointing to strong sales in North America where large vehicles commanded generous prices amid tight inventories.
Shares of the automaker jumped in after-hours trading following report that profits surged to $2.4 billion, more than 5 times the earnings in the year-ago period.
Revenues rose 1% to $37.5 billion.
Ford scored higher United States sales in the quarter for its popular F-Series pickup truck and the smaller pickup model the Ranger, as well as for the revamped Explorer sport-utility vehicle.
Stronger-than-expected vehicle demand and good pricing, with inventories limited following coronavirus shutdowns that pinched production helped boost results, the company said.
Pre-tax profit margins for North America were by far Ford’s strongest globally at 12.5%, an improvement over the year-ago period.
Newly-installed chief executive Jim Farley, who took the top job on October 1, said the company was on a good track after a difficult run that included manufacturing stumbles and questions over strategy.
“We haven’t suddenly fixed the issues in our automotive business, but we have a clear turnaround plan to get that done,” he said.
Ford shares rose 2.8% to $7.70 in after-hours trading. – Rappler.com
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