Tuesday, October 30 16:53:53
Ford Motor Co today posted a third-quarter profit that trounced Wall Street forecasts, driven by higher vehicle prices and record profit margins of 12 percent in North America.
Worldwide, Ford earned $800 million more through price increases than it did last year. Half that jump came from North America, where Ford has earned more than $2 billion and posted margins over 10 percent for three quarters in a row.
The No. 2 U.S. automaker's strength in North America offset the effects of the sharp industry downturn in Europe, where Ford expects to lose at least $3 billion over the next two years, as well as its lagging position in growth markets, such as China.
Ford posted a pre-tax operating profit of $2.2 billion, or 40 cents per share, beating analysts' average estimate of 30 cents per share, according to Thomson Reuters I/B/E/S. In North America, Ford earned $2.3 billion with a 12 percent operating margin.
"Twelve percent segment margins is just insane," said Jefferies analyst Peter Nesvold, who has a "buy" rating on Ford.