Ford Motor Earns 24 Cents per Share

Ford’s earnings were down but they beat expectations. Consensus was for 19 cents per share and Ford earned 24 cents per share.

Ford had pretax operating income of $1.41 billion in North America in the third quarter, down from $2.3 billion a year earlier. That was good for a 7.1 percent margin, down from 10.9 percent in 2013. Ford’s U.S. sales fell 0.5 percent this year through September to 1.88 million cars and light trucks, according to researcher Autodata Corp. Its U.S. market share declined to 15.1 percent from 16 percent a year earlier, according to Autodata, based in Woodcliff Lake, New Jersey.

“We did have some challenges,” Bob Shanks, Ford’s chief financial officer, told reporters today of the automaker’s third quarter. Those included $630 million in recall costs and a $166 million negative effect from a strong dollar. Costs to bring new models to market caused Ford to consume $700 million in cash in the third quarter, its first negative cash-flow period since the first quarter of 2010, Shanks said.

Posted by on October 24th, 2014 at 9:12 am


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