How Ford Made Money

Ford gained market share, partly due to improved products, partly due to consumer perceptions of a company that rejected government aid while competitors required bailouts. Booth said market-share gains enabled Ford to decrease incentives, thereby boosting profits. During the quarter, Ford's market share was 14.6%, up from 12.4% in the same quarter a year earlier. The retail share was 13.1%, up 2.1%.

Ford made money in every major global region. In Europe, its share was 9.2%, the highest third-quarter level in 10 years, as Ford Fiesta was the continent's second best-selling car. Ford Europe had an operating profit of $193 million, while Ford South America had an operating profit of $247 million. In the Asia Pacific region, the operating profit was just $27 million, as gains in China were offset by declines elsewhere.

Ford also got a boost from the financial services, which contributed $661 million or 73 % of the $1.1 billion in pre-tax profits. A year earlier, the contribution was $161 million. The increase reflected lower residual losses due to higher auction values and lower provisions for credit losses.

During the quarter, Ford reported net income of $997 million or 29 cents a share. Analysts surveyed by Thomson Reuters had estimated a loss of 12 cents. Revenue fell 3% to $30.9 billion. Analysts had estimated $28.3 billion. Shortly after midday, Ford shares were trading at $7.59, up 59 cents or 8.4%.

-- Written by Ted Reed in Charlotte, N.C. .

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