Boosted by higher profits in North America, Ford posted a net income of $1.6 billion for the 3rd Quarter. Compared to last year, this is a 63% increase. Ford attributes this quarter’s success to their hot selling F-150 and a favorable tax adjustment. The company reported earnings of $.39 per share which is higher than forecasted.
This is the first full quarter with Ford’s new CEO, Jim Hackett and he had this to say according to The Detroit News:
“This quarter demonstrates that our team’s focus on fitness is showing early promise. But we also know that we must accelerate that progress in the near term, while taking the necessary steps to fundamentally redesign our business operations to be more fit for the long term.”
Although the Blue Oval saw total profits increase, this was solely bolstered by Ford North America. Other markets showed losses including a $158 million loss in South America, $86 million loss in Europe and a $60 million loss in the Middle East and Africa.
Just a few days before releasing their earnings, Ford announced that four senior executive would be leaving by the end of the year. This did not sit well with analysts, but does show that Hackett has a clear direction for the company. Hackett has said he wants to cut $14 billion from engineering and building costs alone. He is focused on diverting funds from the development of passenger cars and the internal combustion engines, to trucks, SUVs and electric vehicle technology.