Ford Motor Company (NYSE:F) has posted impressive third quarter earnings, in part due to growing sales in Europe and South America. Ford said that they earned $1.3 billion, which is down $1.6 from the same period a year ago.
However, the results include special charges of $498 million, which includes $250 million to restructure their European operations. Ford is closing factories and is laying off workers there. Ford also saw a $145 million charge that covers the pensions of U.S. salaried retirees.
Ford posted an operating profit of $2.6 billion, which is a 20% increase from the same quarter a year earlier. These operating profits are the numbers without the charges. Ford reported that their revenues increased 12% to $33.9 billion.
?Across the Ford enterprise we continue to restructure the business to operative profitably,? stated Ford CEO Alan Mulally. “2013 is on track to be another strong year for the Ford Motor Co.”
Ford generated $7.3 billion through the first three quarters of the year compared to $4.1 billion for the same period in 2012. The company also raised their guidance for profits for the entire year. Ford previously said to expect $8 billion in net income and now they are saying that it will exceed $8 billion.
Ford’s North American operating profits are up over $2.3 billion, which is around the same level a year ago. Ford said that they saw strong sales for their pickup trucks.
South America: Ford saw operating profits of only $9 million one year ago hit a gain of $159 million in the latest quarter.
Europe: Ford lost $468 million a year ago compared to $228 million in losses for the latest quarter. Ford said that this was the best quarter since Q2 2011.
[Source: LA Times]