The UAW rank-and-file may have given Ford a little fit over the weekend by voting down a contract with the No.2 US car company.
Monday dawned a better day as Ford may the surprise announcement that it made $1 billion in the third quarter. The firm reported net income of $997 million, or $.28 per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago. It was Ford’s first pre-tax operating profit since the first quarter of 2008.
An even greater surprise what that Ford made money in North America for the first time in four years. Ford North America posted a pre-tax operating profit of $357 million.
The company said it reduced its automotive structural costs by $1 billion in the quarter, largely driven by lower manufacturing and engineering costs, which included benefits from improved productivity, personnel reduction actions primarily in North America and Europe, and progress on implementing its common global platforms and product development processes.
Ford’s cash balance rose to $23.8 billion from $22 billion at the end of Q2.
Ford posted market share gains in most of the regions where it does business and US share was up 2.2% compared with the same quarter a year ago.
Ford did not do as well overseas. In South America the company reported a pre-tax operating profit of $247 million, compared with a profit of $480 million a year ago. In Europe, the company had a modest gain: Ford Europe reported a pre-tax operating profit of $193 million, compared with a profit of $69 million a year ago.
In the critical Asian market, Ford still has a very long way to go compared to GM, Toyota (NYSE:TM), Honda (NYSE:HMC), Nissan, and VW. Ford Asia Pacific Africa reported a pre-tax operating profit of $27 million, compared with a profit of $4 million a year ago.
Almost no one thought Ford could make money in North America–except Ford.
Douglas A. McIntyre
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