NEW YORK – Ford reported a big jump in third-quarter profits yesterday, 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 US$2.4 billion (RM10 billion), more than five times the earnings in the year-ago period.
Revenues rose 1% to US$37.5 billion.
Ford scored higher US 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 help 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 US$7.70 in after-hours trading. – AFP, October 29, 2020
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