GMO Global - Ford has announced a record third quarter with earnings of $2.2 billion.
November 29, 2012 (Newswire) - An announcement by GMO Global to investors at a meeting reportedly noted that Ford Motor Co. saw an over 8% jump in share price after announcing earnings of 40 cents per share. The Michigan company was able to overcome growing losses in Europe with a strong domestic performance.
Ford's European unit saw pre tax losses of $406 million, compared to losses of $306 million for the same period of the previous year. Ford's forecast for the total loss for it's European unit is $1.5 billion, with a similar forecast for next year. Ford is planning to cut 13% of its European workforce, amounting to some 6,200 employees.
This was overcome with North american revenues of $6.5 billion for the quarter, which is larger than the entire revenues of the previous year. GMO Global allegedly remarked that a spokesman for Ford credited the jump in revenue on its strong lineup of vehicles and brisk sales.
South American sales were less impressive with pre-tax earnings of $9 million. This is considerably less however than the $276 million for the same period of the previous year. Asian sales were also strong, with earnings of $45 million comparing favorable with the $43 million loss for the third quarter of last year.
GMO Global appear to believe that the largest US auto manufacturer, General Motors, saw their share price climb 9.5% after exceeding general market estimates. Leaving one time items, GM's earnings were 93 cents per share. It was that largest gain in share price by GM since their 2010 IPO.