• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Most Popular Car on TikTok isn’t a Car: 2022 Ford Maverick
  • Rivian Confirms Plans to Meet 25K Production Goal
  • Will Apple Achieve What Automakers Can’t?
  • Q&A: Tristan Murphy, Cadillac Lyriq Interior Design Manager
  • Sales Battle Royal Rages in Pickup Segment
  • Toyota is No. 3 — Third Automaker to Pass EV Tax Credit Threshold
  • Ford Gains Ground on Strong June Sales, Up 31.5% YOY
  • Q&A: Cadillac Lyriq Exterior Design Manager Josh Thurber
  • After 18% Sales Slide, Tesla No Longer World’s Best-Selling EV Brand
  • Get Updated on Cars, EVs and More with the Headlight News Podcast
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2022 Lexus NX 350h
    • A Week With: 2022 Jeep Grand Cherokee 4xe Overland
    • A Week With: 2022 Volkswagen Tiguan SE R-Line Black
    • First Drive: 2023 Cadillac Lyriq
    • First Drive: 2022 Ford Bronco Everglades Edition
    • A Week With: 2022 Mazda3 2.5 S AWD Hatchback
    • First Drive: 2023 Honda HR-V
    • First Drive: 2022 Ford Bronco Raptor
    • A Week With: 2022 GMC Terrain AT4 AWD
    • A Week With: 2022 Cadillac Escalade Sport
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Ford Earnings Drop During Third Quarter

        Ford Earnings Drop During Third Quarter

        Poor results in China hurt overall numbers.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        Oct. 24, 2018
        Jim Hackett, Ford president and CEO, said the company is continuing to engage in its transformation efforts.

        Even though the company’s revenue increased by 3% during the third quarter, Ford Motor Co.’s income dropped by 40% during the third quarter to $1 billion, compared to $1.6 billion in the third quarter of 2017.

        The income drop was primarily driven by what the company described in its earnings release as “continued challenges in China. In North America, the company delivered an 8.8% EBIT margin, supported by more than $1 billion of improved mix, thanks to the continued shift towards utilities and trucks, as well as high-end trim models.”

        News Now!

        “This quarter shows that our business remains very strong in key areas. We continue to make progress on our efforts to redesign Ford to be far more competitively fit, disciplined in capital allocations and nimble enough to win in a fast-changing world,” said Jim Hackett, Ford president and CEO. 

        “With products like the Edge ST and Ranger launching in the United States and the Territory SUV in China, we are also building momentum shifting our product portfolio to build on our strengths and meet shifting consumer demand,” Hackett said.

        (Hackett says Ford making headway on turnaround. Click Here for the story.)

        Ford’s earnings before interest and taxes was driven by the North America business, with nearly $2 billion of EBIT, an improvement of $136 million year over year, despite lower volume and higher commodity costs, supported by a share increase for the F-Series, record transaction pricing for Super Duty and higher sales of SUVs.

        In the U.S., Ford trucks and SUV sales totaled 482,512 vehicles, representing a 2.8% gain over the third quarter of 2017. F-Series average transaction prices increased by $858 per truck compared to a year ago, totaling $46,224.

        Ford Credit also had a strong quarter, generating an EBT of $678 million, driven by favorable volume and mix, as well as favorable lease residuals. The company saw auction values rise 5% from prior year at constant mix and now expects auction values to increase on average 3% at constant mix for the full year.

        “This quarter we achieved a North America EBIT margin of nearly 9% and the best quarterly result in Ford Credit in more than seven years, while teams across the company continue to aggressively improve the operational fitness of the business,” said Bob Shanks, executive vice president and CFO.

        (Click Here for a closer look at the 2019 Ford Ranger.)

        “Our balance sheet remains robust, with more than $23 billion of cash and more than $34 billion of liquidity. The company remains on track to achieve full year adjusted EPS of $1.30 to $1.50.”

        Outside of North America the company had a $558 million EBIT loss, slightly improved from the second quarter, despite lower volume. Ford’s EBIT loss in South America totaled $152 million, compared with a $2 million in the third quarter of 2017.

        In Europe, the EBIT loss totaled $245 million, compared with $192 million in the same period in 2017. In Asia Pacific, Ford’s losses narrowed as the company posted a loss of $208 million, compared with $522 million in 201.

        “In all regions, teams continue to work to improve the operational fitness of the business, while building on core company strengths. In Europe, the share for commercial vehicles improved to 15.4%, a record quarter, as the region continues to build on its commercial vehicle success,” Shanks said.

        Ford’s balance sheet remains strong, with $23.7 billion of cash and $34.7 billion of total liquidity. Ford is also reaffirming adjusted EPS guidance for the full-year in the range of $1.30 to $1.50 and positive cash flow that will be lower than 2017.

        (To see more about Ford officials pledging to be more transparent during turnaround, Click Here.)

        Ford also said that as a result of the higher costs and uncertainty impacting the entire sector, coupled with unexpected deterioration this year in the Europe and China business, current company forecasts show that it will not reach its previously announced 8% EBIT margin or high teens ROIC targets by 2020. However, the company continues to attack costs, increase the operational fitness of the business and remains committed to hitting these targets over time.

        Recently Published
        2022 Ford Maverick Lariat

        Most Popular Car on TikTok isn’t a Car: 2022 Ford Maverick

        Yesterday
        2022 Rivian R1T - beauty shot

        Rivian Confirms Plans to Meet 25K Production Goal

        Yesterday

        Will Apple Achieve What Automakers Can’t?

        Yesterday

        One response to “Ford Earnings Drop During Third Quarter”

        1. Allen says:
          October 25, 2018 at 2:54 pm

          “Ford’s balance sheet remains strong…” How does it compare with GM and FCA?

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2022
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: