Are Investors Happy With Ford Motor Co. (NYSE:F)?
The S&P 500 index tracked Ford Motor Co. (NYSE:F) released its much awaited results from its 3Q operations today morning. As was being expected on the basis of strong growth in September sales numbers it had published earlier, the car maker has posted big revenue increase (3Q revenue was $36 billion) accompanied by increase in the number of vehicle units sold during the July – September time frame. The $68.91 billion market capitalized car maker saw sales demand going up in all its key markets of U.S, Europe and Asia. Thanks to the pickup in demand for its cars in Europe, it was able to narrow down its losses significantly to $228 million in comparison to $468 million in 3Q12.
Long term investors in the stock would be enthused to learn that Ford managed to show profitability in all its operating markets except Europe. Over all it reported net income from operations in its third quarter of $1.3 billion which translates to $0.31 earnings per share.
A detailed drill down into the number breakup paints a very positive picture of the car maker’s financial position. It had managed to post $2.6 billion earnings before tax this quarter, if one adds up $498 million the car maker paid out this quarter to settle its pension obligations for ever and roughly $700 million on restructuring its European operations. These two payouts should be read as investments the company is making to increase its cash flow and operational efficiencies going forward.
In more good news for its diehard fans and investors, Ford announced that it expects FY13 earnings to go past its 2012 efforts. In the run up to the result announcement, the stock had appreciated by close to 3.9% today. At the time of posting this note, the stock was trading at $18.02 per share indicating a 2.85% increase from its previous day close price.