All Ford factory workers and dealers have expressed with the new management in place that focuses on transparency and better performance efficiency. Streamlining the supply chain and cost reduction are key focus areas for the automobile giant.
On Wednesday, October 28, Ford Motor Company (NYSE: F) released a stellar number for its Q3 2020 performance beating Wall Street expectations. The American automobile giant has managed to successfully come out of the COVID-19 pandemic troubles this year.
Ford Q3 Numbers
Ford reported a $2.4 billion net income clocking revenue of $34.71 billion against the expected $33.51 billion. The company also reported earnings per share (EPS) at 65 cents against the expected 19 cents. This year, Ford Motors added nearly $2 billion QOQ to its net income against $423 million net income in Q3 2019. It’s adjusted EBIT also doubled at $3.6 billion against $1.8 billion in Q3 2019.
Although down by 2.78% during the closing bell on Wednesday, the Ford Stock (F) was trading 5% higher in the market after hours.
As per the analysts, the restructuring at Ford’s top management has helped it pull off better results. Earlier this year, CEO Jim Farley promised greater transparency after his predecessor Jim Hackett received a lot of criticism. Farley said:
“My commitment to each of you is transparency, including purposeful, measurable key performance indicators so you can objectively track our progress”.
Several industry analysts think that Farley’s takeover has boosted morale among factor workers and dealers. His straight-talking-nature without cutting corners has appealed to all players associated with Ford.
During the media briefing on Wednesday, Ford CFO John Lawler said:
“We executed very well this quarter. We saw a much higher demand than what we expected and we plan to compete like a challenger.”
Truck and SUV Sales Help Ford Sail Through
The key drivers to Ford’s profit during the third quarter were stronger-than-expected demand for its trucks, SUVs, and other commercial vehicles. The company said that its redesigned vehicle launches are starting to gain traction in the market.
However, the company still has a lot at stake with the upcoming launches of the redesigned Ford Bronco and Bronco Sport, the all-new 2021 Ford F-150, and its all-electric Mustang Mach-E. CFO Lawler said: “There’s more to fix, and we’re carrying out a clear plan to do that.” He further added that cost reduction and “skillfully managed supply chains” will be the key areas of focus.
Two weeks back, Benchmark analyst Michael Ward told shareholders that he remains optimistic about the company’s recovery. He said:
“A new management team and better-than-expected third-quarter earnings provide a near-term catalyst for Ford. Momentum from new products and the need to replenish depleted inventories of full-sized pickup trucks should accelerate the momentum into 2021.”
Ford ended this quarter with $30 billion in cash and total liquidity of over $45 billion.
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