Ford Advances After Outpacing Profit Estimates: Detroit Mover
Ford Motor Co. (F), the second-biggest U.S. automaker, climbed the most in more than 14 months after posting quarterly profit yesterday that exceeded analysts’ estimates.
The shares rose 8.2 percent to $11.16 at the close in New York, the biggest daily increase since Aug. 9, 2011, and the fourth-largest gain in the Standard & Poor’s 500 Index. (SPX) Trading had been suspended the past two days because of Hurricane Sandy.
Ford reported third-quarter profit of 40 cents a share excluding one-time items, beating the 30-cent average of 19 estimates compiled by Bloomberg, as its North American unit delivered record pretax operating income of $2.3 billion. Net income was $1.63 billion, or 41 cents a share, compared with $1.65 billion, or 41 cents, a year earlier.
The Dearborn, Michigan-based company derives most of its sales and profit in its home region, which helped overcome widening losses in Europe. The European pretax loss was $468 million, compared with $306 million a year earlier.
Ford has said it expects its European losses to total more than $1.5 billion this year and again in 2013. The automaker plans to cut 6,200 employees in Europe, or 13 percent of its workforce in the region.
General Motors Co. (GM), the largest U.S. automaker, surged 9.5 percent to $25.50 after reporting third-quarter results that exceeded analysts’ estimates. Excluding one-time items, the Detroit-based company’s profit was 93 cents a share, compared with the 60-cent average of 17 estimates. Today’s share gain was the largest since GM’s November 2010 initial public offering.
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