Ford (F 8.80, +0.62, +7.58%) has jumped 7.5% after beating quarterly
expectations and reaffirming its guidance. Today's advance comes after the
stock ended yesterday's session at its lowest level since November 2009.
The automaker reported above-consensus third quarter earnings of $0.29 per share on a 3.0% year/year increase in automotive segment revenue to $34.66 bln, which was also ahead of estimates.
Ford's adjusted earnings before interest and taxes declined 26.1% year/year to $1.70 bln. Automotive EBIT margin worsened to 4.0% from 5.6% one year ago. The company generated $13.67 bln from operating activities, down 8.6% year/year.
Ford's revenue growth was driven by gains in North America and Europe while sales in other geographies decreased. Wholesale volume fell 12.6% year/year to 1.353 mln.
Looking at the segment breakdown, North America revenue grew 6.7% to $22.3 bln with wholesale volume decreasing 0.9% to 644,000. The company's market share declined by 10 basis points to 13.3%. Earnings before interest and taxes improved by 5.3% to $2.00 bln while EBIT margin remained unchanged at 8.8%.
South America revenue decreased 13.3% to $1.3 bln while wholesales declined 8.7% to 94,000. Regional market share worsened to 8.4% from 8.8% one year ago. The segment recorded a pre-tax loss of $152 mln after reporting a pre-tax loss of $154 mln one year ago. EBIT margin declined by 2.4 percentage points to -11.8%.
Europe revenue increased 7.3% year/year to $7.4 bln with wholesales rising 4.1% to 356,000. Market share declined to 7.0% from 7.3% one year ago. The segment recorded a pre-tax loss of $245 mln after reporting a loss of $53 mln one year ago. EBIT margin worsened to -3.3% from -0.8% one year ago. Volume growth was recorded in most markets, but Turkey saw a sharp decline.
Middle East & Africa revenue fell 6.4% to $600 mln while wholesales declined 16.7% to 25,000. Market share worsened to 3.2% from 3.9% one year ago. The segment recorded a pre-tax profit of $47 mln, an improvement from a pre-tax loss of $56 mln from one year ago. EBIT margin improved to 7.7% from -8.6% one year ago.
Asia Pacific revenue decreased 16.2% to $3.1 bln while wholesales fell 38.3% to 234,000. Market share worsened to 2.5% from 3.4% one year ago. Segment pre-tax loss totaled $208 mln, down from a pre-tax profit of $314 mln one year ago. EBIT margin weakened to -6.7% from 8.6% one year ago. Weakness in the segment was due to lower volume and net pricing in China JV operations and unfavorable market conditions for Explorer and Lincoln imports.
The Mobility Segment recorded a pre-tax loss of $196 mln while Ford Credit reported a pre-tax profit of $678 mln.
The company reaffirmed expectations for full-year earnings between $1.30/share and $1.50/share. The company expects that cash flow will be lower than what was observed in 2017.
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