According to Securities Times Online, Ford Motor Company released its third quarter financial report after Monday's close, with revenue exceeding market expectations, but the company issued a warning about profit expectations. Ford expects its pre tax profit for this year to be around $10 billion, lower than the previously expected $10 billion to $12 billion. CEO Jim Farley pointed out that global price wars, overcapacity, the influx of new electric vehicle brands, and compliance pressures are the reasons for the downward adjustment of profit expectations.
Ford's revenue for the third quarter was $46.2 billion, higher than analysts' forecast of $41.9 billion, but lower than the previous quarter's $47.8 billion, an increase of 5% compared to the same period last year. The adjusted earnings per share were $0.49, in line with expectations.
Ford is dividing its business into three divisions through the "Ford+" plan: Ford Blue (traditional gasoline powered business), Ford Model e (electric vehicle division), and Ford Pro (commercial and super truck business). In the third quarter, Ford's car deliveries in the United States increased by 4.3% year-on-year, electric vehicle sales increased by 12% year-on-year, and hybrid vehicle sales surged by 38% year-on-year.
At the same time, Ford's competitor General Motors performed well in the third quarter, with an expected annual pre tax profit of $14 billion to $15 billion. General Motors also announced that it has repurchased $16 billion worth of stock in the past year.