Ford Motor Co. said Wednesday it made $892 million in net income in the third quarter of 2024, a 25% year-over-year decrease, following a previously expected $1 billion charge for canceling its all-electric three-row SUV program.
The profit that represented 22 cents per diluted share came on $46 billion in revenue, which was up 5.5%. Those were mixed results compared to Wall Street expectations. Analysts, according to Yahoo Finance, on average were projecting the Dearborn automaker to record $41.88 billion in revenue, which it beat, and 47 cents for earnings per share, which it missed.
For the July-through-September quarter, Ford posted adjusted operating earnings of $2.6 billion, up 18% year-over-year. Net income margin was 5.5%, up from 5% a year ago. Ford says it expects its annual adjusted operating earnings will come in around $10 billion, the low end of its previously stated $10 billion to $12 billion range.
“We are in a strong position with Ford+ as our industry undergoes a sweeping transformation,” Ford CEO Jim Farley said in a statement. “We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software and next-generation electric vehicles. Importantly, over time, we have significant financial upside as we bend the curve on cost and quality, a key focus of our team.”
The Blue Oval’s shares in post-market trading were falling 3.3% to $11 per share after closing at $11.38 on Monday.
Operating income of Ford Blue, the company’s internal combustion engine and hybrid vehicle business, declined 5.3% to $1.627 billion with a 6.2% operating margin. The company decreased its annual outlook for the division to $5 billion, down from $6 billion, which it had decreased from $6.5 billion in the second quarter after unexpected warranty costs from older models weighed on results.
Ford’s U.S. sales rose less than 1% in the third quarter, and crosstown rival General Motors Co. surpassed it in U.S. electric vehicle sales. Ford at the start of the month launched its “Power Promise” that includes offering to pay for a home charger and its standard installation for customers who buy a new Ford EV through the end of the year.
The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $1.224 billion compared to $1.329 billion a year ago. Ford is forecasting a $5 billion loss on Model e in 2024, the low end of its previously shared $5 billion to $5.5 billion range.
The Dearborn automaker in August said it was canceling plans for a three-row, all-electric SUV whose launch it had delayed by two years less than five months prior, writing off as much as $1.9 billion. Executives said the EV market isn’t prepared for a product like that to be profitable.
It was a different story at Ford Pro, the Dearborn automaker’s commercial vehicle business. It posted more than $1.814 billion in operating income, up 9.7% from last year, and a 11.6% operating margin. It projects $9 billion in earnings for the year from the division, the low end of its previously shared $9 billion to $10 billion range.
The company still is forecasting adjusted free cash flow between $7.5 billion and $8.5 billion. Ford anticipates capital expenditures for the year of $8 billion to $8.5 billion, a slight adjustment from $8 billion to $9 billion. It also anticipates earnings before taxes of about $1.6 billion for Ford Credit, up slightly from the previously shared $1.5 billion.
The company also declared a fourth-quarter regular dividend of 15 cents per share, payable on Dec. 2 to shareholders of record at the close of business on Nov. 7.
Beating Wall Street expectations last week, GM in the third quarter made $3.056 billion in net income on revenue of $48.757 billion, prompting it to increase its annual guidance for the third consecutive quarter.
Stellantis NV will report third-quarter revenue and shipments on Thursday; the Netherlands-domiciled automakers reports earnings for the first and second halves of each year.
bnoble@detroitnews.com
@BreanaCNoble
