Ford logs dismal third quarter but is optimistic of performance ahead

Article by Christian A., on October 27, 2014

Newly installed Ford Motor Co. chief executive Mark Fields has one quarter of report to deliver. Results were mixed, but Fields is optimistic and confident that Ford would do much better in 2015. For the third quarter of 2014, Ford logged a 54-percent drop in pretax operating profit in the third quarter to $1.18 billion, no thanks to lower sales volume and higher warranty costs.

The carmaker also saw its net income drop 34 percent to $835 million, although results were ridden with one-time charges. Ford logged a slimmer fall in revenues at 3 percent to $34.9 billion. Ford posted profits in North America and in Asia Pacific, although it logged losses in Europe, South America and the Middle East & Africa.

In a statement, the carmaker said that during the quarter it launched an “unprecedented number” of new vehicles and invested heavily in the new products and technologies. These may have affected the results negatively for the quarter although they are expected to deliver strong profitable growth starting 2015.

The carmaker is in the midst of its busiest product launch schedule ever, and has already launched 12 of 23 new or refreshed models globally this year. One of these launches is the redesigned Ford F-series pickup. Ford chief financial officer Bob Shanks admitted having some challenges during the quarter, but said everything was in line with their expectations at the end of September. ”

During the investor conference at end of September, Fields said they are now expecting a lower profit for 2014 at a range of between $1 billion and $2 billion. Ford said the lower guidance is attributable to factors like economic weakness in Russia and South America as well as $1 billion in unplanned warranty expenses.

If you liked the article, share on:

Topics: ford

Comments

Recommended

The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
Hyundai revealed to the press that it doesn’t plan on breaking any kind of top speed records with its newest N performance line. That is because the brand mainly focuses...
by - January 18, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries