Ford Motor Co. made $2.4 billion in net income during the third quarter of 2020 and revised its full-year outlook to reflect an overall profit as demand for SUVs and pickup trucks advanced faster than expected.
The Dearborn, Michigan-based automaker recorded total revenue of $37.5 billion for the quarter on a net income margin of 6.4%. The company ended the quarter with nearly $30 billion in cash and more than $45 billion in liquidity after fully repaying $15 billion in revolving credit loans.
Updated guidance for the fourth quarter anticipate earnings between break-even and a loss of $500 million.
According to a company statement, the strong performance was due to company operations, focus on high-demand vehicles, and the reversal of the effects of the coronavirus pandemic on businesses.
“We know there’s huge value to be unlocked as we turn around our automotive operations,” said Jim Farley, CEO of Ford. The summer saw Ford, FCA, and GM bring their U.S. production facilities to an unprecedented cold stop, but the companies have since resumed mostly-normal production.
“We haven’t suddenly fixed the issues in our automotive business, but we have a clear turnaround plan to get that done,” said Farley. “That work is underway and we’re making progress.”
Ford’s sales for the quarter were also notably strong: they grew by 8% and delivered an operating margin of 12.5% in North America, which more than offset losses in Europe, South America, and China.
In a call with investors, Farley said that electric vehicles will be “fundamental” to the company’s future. Ford began building the electric Mustang Mach-E this month and expects to debut it alongside two other traditional trucks next quarter, the 2021 F-150 and Bronco Sport.
