Ford Motor Company reported a record third quarter 2013 pre-tax profit of $2.6 billion. Ford says the record profit is due to strong performance in North America and a combined profit from the regions outside North America.
This announcement marks Ford’s 17th consecutive quarterly profit. As for Ford’s troubled European operations, investors were encouraged to learn the company appears to be getting European losses under control. Europe is still operating at a loss but the trend is in the right direction.
Total company third quarter pre-tax profit of $2.6 billion was $426 million higher than a year ago. Third-quarter earnings per share of 45 cents was 5 cents per share higher than a year ago.
Net income for the third quarter of $1.3 billion, or 31 cents per share, was down $359 million, or 10 cents per share, compared with a year ago due to pre-tax special item charges of $498 million.
Special item charges included $250 million for separation-related actions, primarily in Europe to support the company's transformation plan, and $145 million associated with Ford's U.S. salaried retiree voluntary lump sum payout program as part of the company's pension de-risking strategy.
Ford’s captive finance arm, Ford Motor Credit Company, reported third quarter pre-tax profit of $427 million, compared with $393 million a year earlier.
Some stock market analysts are raising Ford's target stock price to $23.00/share - based on the company's better than expected quarterly profit and the fact that Ford's losses in Europe are smaller, compared to last year. Ford stock closed at $17.60/share Friday, October 25, 2013.