Ford’s Quarterly Earnings Plunge 37%

Ford Motor Co.’s third-quarter revenue rose 3% to $37.6 billion. But a slump in China caused net income to shrink to $991 million from nearly $1.6 billion in the same period last year.

Ford says it won’t hit its goal of achieving an 8% profit margin worldwide by 2020. The company—citing rising costs, trade uncertainties and problems with overseas markets—declined to offer a new target date.

Global vehicle sales to dealers in July-September dropped 10% to 1.35 million cars and trucks. Ford’s wholesale volumes dipped 1% in North America, fell 9% in South America and dropped 10% in China. The company says trade war tariffs cost $1 billion during the period.

Third-quarter pretax earnings improved slightly in North America and swung to a positive $47 million in the Middle East/Africa. EBIT losses in Asia Pacific narrowed to $208 million from $522 million a year ago.

Revenue for Ford Motor Credit grew 7% to $3 billion in the third quarter. Net income surged 25% to $518 million. The unit credits a richer product mix and better-than-expected residual values on vehicles coming off lease and being sold to the used-car market.

Ford says losses by its emerging mobility operations jumped 58% to $196 million in July-September because of investments to develop new technologies and launch mobility services.