Ford’s Quarterly Net Earnings Drop 57%

Ford Motor Co. reports that marketing and restructuring costs slashed its third-quarter net profit 57% as unit sales and revenue fell.

The company’s adjusted operating profit for the period grew 8% to $1.8 billion, boosted by its Ford Credit finance unit. But quarterly revenue slipped 2% to $37 billion. Net profit slid to $425 million from $991 million year on year.

Ford’s global wholesales declined 8% to 1.24 million vehicles, hurt by shrinking volumes in North America (-1% to 639,000 units), Europe (-15% to 303,000) and China (-14% to 116,000).

A richer mix of trucks and SUVs in North America boosted regional revenue 5% to $23.4 billion. Earnings before interest and taxes advanced 3% to $2 billion.

In Europe, quarterly revenue shrank 14% to $6.4 billion. Pretax losses narrowed, thanks to lower structural costs and a richer mix of commercial vehicles.

In China, revenue fell 27% to $900 million. The company’s pretax loss shrank 26%.

Last year, Ford earned a pretax profit of $7 billion. Three months ago, the company predicted a full-year operating profit this year between $7 billion and $7.5 billion. Now it anticipates the range will be $6.5 billion-$7 billion.