Truck sales in the United States have been booming as of late, bringing Ford’s third-quarter net income to $1.6 billion. Due to their light-truck sales in North America and throwing in foreign tax credits, the car manufacturer saw a 63 percent rise in net income for this quarter. This year, Ford saw a $1.7 billion pretax profit in North America, which is up 31 percent from the same period in 2016. The company’s profit margin has also jumped to 8.1 percent compared to 5.8 percent last year.
Internationally, Ford had some issues with European markets but was able to increase sales in other regions around the world. The company suffered a $86 million loss in Europe which they are attributing to the United Kingdom’s vote to leave the European Union, as well as the money they spent on launching a redesigned Fiesta sedan for the region. The company believes that Europe will be profitable in the fourth quarter and the full year, and their track record is sold: this was their first quarterly loss in European markets since the first quarter of 2015.
In other regions around the world, Ford was able to present better news. Even though they lost $158 million in South America, that is only about half of what they lost there last year. In the Middle East and Africa, the company lost $60 million, which is much better than the $152 million they lost in 2016. Although they did lose money in these areas, they lost significantly less than years prior, keeping Ford hopeful for the future. That being said, the company was able to have a record high year in the Asia Pacific region, bring pretax profits in that area to $289 million. This is a major growth region for American automakers, but Ford will need to pull up sales in other regions if they want to compete with globalized automakers like GM, Renault-Nissan, and Toyota.
If there is one thing that many of us know, it’s that truck sales are definitely on the rise. In the United States specifically, both trucks and SUVs have been making the majority of the money for a number of car manufacturers, and Ford is one of them. If they keep pushing out new and improved trucks for North America while simultaneously catering to some of their less-profitable regions, the company will be able to see improved growth in the next few years. Eventually, Wall Street might even notice.