The company’s revenue excluding special projects was $2.6 billion, almost twice the $1.4 billion in the same period last year. Moreover, the figure is much higher than the $932 million that analysts expected for the quarter.
The company and other automakers all suffered losses in the first half of this year, because the Covid-19 pandemic caused auto factories to stop production and drastically cut global car sales. In the first six months of 2020, excluding special items, Ford’s net loss was $2.3 billion.
Sales rebounded strongly in the third quarter, although it was not good compared to the same period last year, as Ford’s sales to global dealerships fell by 5% compared to the same period last year to 1
.18 million. But due to the high prices of the cars it did sell, the company’s car revenue still managed to grow by 2% to $37 billion. The increase in pricing has increased the company’s profits by $900 million.
The results indicate a rebound in the automotive industry as a whole.
Share of Ford (F)Since the beginning of June, rivals General Motors and Fiat Chrysler have both gained more than 25%. Wednesday morning, Fiat Chrysler (alliance) Report record revenue.
Concerned about the increase in Covid-19 cases, all three auto stocks lost in the market sell-off on Wednesday.But Ford’s performance increased its share price by more than 6% in after-hours trading and boosted General Motors (General Motors) stock. General Motors will report its results next week.
Ford warned on Wednesday that fourth-quarter results will be more difficult, as measured by earnings before interest and taxes (EBIT), and may even lose money.
Disadvantages include accelerated production of the new version of the F-150 pickup truck, the best-selling car on the US market, and the higher costs associated with the upcoming Mustang Mach-E and Bronco Sport and lower revenue from Ford Credit. The company did say that it should be profitable for the entire year on an EBIT basis.
But even this warning has failed to prevent investors from being excited about far better than expected returns.