Affected by accounting changes regarding commodity prices, Ford Motor Co. disclosed that third-quarter net earnings dropped from $1.69 billion in 2010 to $1.65 billion this year. Pretax profits decreased to $1.94 billion from $2.06 billion a year earlier. Pretax operating profits in its North American operations were generally flat from the year-earlier period at $1.6 billion, while in South America, operations were also in the black.
However, Ford's Asian Pacific, African and European operations posted pretax losses in the quarter. Meanwhile, profits at the company's financial operations declined. Revenues improved as the car maker increased cash and further slashed debt.
Despite an uncertain business environment, the company still "delivered solid results" for the third quarter, said Ford chief executive officer Alan Mulally in a statement. The outcomes marked the company's ninth consecutive pretax quarterly profit and 10th consecutive net profit while maintaining a current pattern of softer earnings, which Ford had forecasted.
The company increased its estimate for fourth-quarter production in North America from the previous 645,000 units to 660,000 units. The profits came on a 14 percent increase in revenues of $33.1 billion during the three-month ended September 30. Last year, the company posted revenue of $29 billion, excluding revenues from Volvo, which was sold by Ford during the third quarter of 2010.
Ford's U.S. sales increased 9 percent this year through September. It is benefitting from lower incentives and higher transaction prices. It also acquired market share in North America during the period. In North America, Ford gained from a $700 million growth in net pricing of automobiles and light trucks versus the same period last year.
Ford is planning an exciting sales launch of the rousing new-generation Focus in early 2011, after having unveiled the line’s three core models at the 2010 Paris Motor Show.
The three models exhibited in complete detail at the Ford stand are the dynamic five-door hatchback, classy five-door wagon and sophisticated four-door sedan. Initial production is slated for late 2010 in North America and Europe.
Focus is the best-known Ford internationally. More than 10 million units have been delivered since the line’s 1998 debut. It continues to be one of the world’s favourites for its excellent value, safety and comfort, as well as offering great fun when driven.
All-new Ford Focus is predicted to extend the line’s success, while showing off the next Ford evolutionary step based on the company’s game-changing international development program covered by their ONE Ford strategy.
New Focus design is refreshed in a more dynamically sleek way, which reflects the numerous economic features and technologies that surpass all competitors in its segment. Customers are also ensured top levels of quality and workmanship, as well as excellent fuel efficiency – traits that all take the renowned Focus driving experience up several notches.
Derrick Kuzak, Ford’s group vice president of Product Development said that the new Focus embodies the company’s best, so much so that they eagerly anticipate the delivery of the first units with their customers. He adds that Ford’s C-car platform investment made it possible to develop a product with great value, quality, fuel economy, technology and safety to customers worldwide in a way that exceeds their expectations.
The all-new Ford Focus was developed in Europe and will be sold in more than 120 countries with an 80 per cent commonality of parts. It is seen as the hero model borne out of the Ford Motor Company's new international C-segment platform, which is expected to account for more than ten vehicles globally, with a planned delivery of two million cars annually by 2012.