Ford Motor Company (NYSE: F) revved up early morning trading after posting third-quarter earnings on October 24 that surpassed analysts’s expectation. Early morning trades as high as $18.19 per share passed the company’s previous 52-week high set in September of $17.77 per share. Earnings per share for the company were 45 cents in the third-quarter, up 5 cents year-on-year. Ford’s pre-tax profit increased by $426 million compared to third-quarter 2012, to $2.6 billion. Consolidated revenue increased 12 percent on the year to $36 billion.
Due largely to what the company calls “special item charges” its net income was $1.3 billion, down $359 million from 2012. Special item charges for the quarter included $250 million, mostly spent in Europe as part of its restructuring plan and $145 million that went towards a retiree, lump-sum payout in the U.S.
Both categories contributing to higher expenses for the company are unlikely to continue. Although there was a loss in the European market, it was an improved picture from one year ago. Third-quarter 2013 European results increased 5 percent for volume and 12 percent for revenue in the region over last year. By Ford’s calculations, the lump sum retiree program in the U.S. is 80 percent complete.
The release of the earnings also quoted Alan Mulally, Ford’s CEO and president. “Ford’s record results in the third quarter show the strength of our One Ford plan around the world.” Backing up his claims are global increases in volume for Ford compared to third-quarter 2012. Volume was up: 13 percent in North America; 22 percent in South America; and 35 percent in Asia-Pacific.
As a result of the strong quarter, Ford has revised its financial outlook for the year. It is now expecting 2013′s pre-tax profits to be higher than last year, and a substainial increase in Automotive operating-related cash flow.