Ford's Operating Profit Falls in Third Quarter
Third-quarter financial numbers are in and Ford’s figures have shrunk.
The Dearborn, Michigan-based automaker’s pre-tax operating profit measured $1.18 billion, down 54 percent compared to last year. Lower sales and higher warranty costs ate into the company’s financial performance.
Ford’s net income also dropped, 34 percent in this instance. It clocked in at $835 million. A $160 million charge for restructuring efforts in Europe hurt profitability, as did another $498 million pre-tax charge earlier in the financial quarter.
SEE ALSO: 2015 Ford F-150 Review
Ford made money in North America and the Asia/Pacific region, but they lost out in markets like Europe, the Middle East and Africa as well as South America.
Investment in new and refreshed products also took a bite out of the company’s finances as did a five-week shutdown at their Dearborn Truck Plant as they scramble to get production of the all-new 2015 F-150 rolling.
GALLERY: 2015 Ford F-150
Born and raised in metro Detroit, Craig was steeped in mechanics from childhood. He feels as much at home with a wrench or welding gun in his hand as he does behind the wheel or in front of a camera. Putting his Bachelor's Degree in Journalism to good use, he's always pumping out videos, reviews, and features for AutoGuide.com. When the workday is over, he can be found out driving his fully restored 1936 Ford V8 sedan. Craig has covered the automotive industry full time for more than 10 years and is a member of the Automotive Press Association (APA) and Midwest Automotive Media Association (MAMA).
More by Craig Cole