Ford Motor (F 12.21, +0.17) has climbed 1.4% after beating quarterly expectations and raising the low end of its guidance.
The automaker reported above-consensus third quarter earnings of $0.43 per share on a 0.9% year-over-year increase in revenue to $33.65 billion, which was also better than expected.
Adjusted pre-tax profit increased by $600 million to $2.00 billion due to lower costs resulting from a non-repeat of a recall that took place last year. Net material cost efficiencies also contributed to the increase in profit.
Wholesales declined by 26,000 to 1.50 million while automotive market share declined to 6.8% from 7.3% one year ago.
Looking at the segment breakdown, North American wholesale volume declined 5.4% to 650,000 while revenue fell 4.1% to $20.90 billion. Favorable pricing and lower contribution and structural costs led to a 21.4% year-over-year increase in pre-tax profit to $1.70 billion. Market share declined by 10 basis points to 13.5%.
South American wholesale volume increased 15.7% to 103,000 while revenue increased by $200 million to $1.50 billion. Market share declined by 60 basis points to 8.8% and the company recorded a pre-tax loss of $158 million, which represented a $137 million year-over-year improvement, resulting from better macroeconomic conditions.
European wholesale volume increased 6.9% to 342,000 while revenue increased by $600 million to $6.90 billion. Revenue growth was driven by higher volume, stronger mix, and favorable pricing. Brexit effects, higher commodity costs, and the launch of Ford Fiesta weighed on pre-tax profit, which declined by $224 million to a loss of $86 million. Market share fell 50 basis points to 7.3%.
Middle East & Africa wholesale volume declined 16.7% to 30,000 while revenue dipped by $200 million to $600 million. Market share declined 20 basis points to 4.0%. Favorable cost performance and currency exchange effects reduced the segment's pre-tax loss by $92 million to $60 million.
Asia-Pacific wholesale volume decreased 4.8% to 379,000 while revenue improved by $600 million to $3.70 billion. Material cost reductions and lower structural costs led to a $158 million increase in pre-tax profit, which rose to $289 million. Market share decreased by 30 basis points to 3.4%.
Ford Credit reported a pre-tax profit of $600 million, which was up $33 million year-over-year.
Looking ahead, Ford expects that earnings for the full year will be between $1.75 and $1.85 per share after previous guidance called for earnings between $1.65 and $1.85 per share. The company expects that Ford Credit will generate full-year pre-tax profit of more than $2.00 billion.