NEW YORK (TheStreet) -- Ford (F) - Get Report beat estimates on the top and bottom line for its 2016 third quarter, despite a $600 million expense related to a recall for faulty doors, CEO Mark Fields said on Fox Business' "Mornings with Maria Bartiromo" on Thursday.
Before Thursday's opening bell, Ford reported earnings of 26 cents per share, beating estimates of 20 cents per share. Revenue declined by 6% year-over-year to $35.94 billion, topping expectations of $33.80 billion.
While revenue was down, that's what the automaker was expecting because of the recall, Fields said.
Ford is trimming production in North America because of a decline in demand, noted Fox Business' Maria Bartiromo.
The overall auto market is "still relatively strong," but there is some weakness in the retail end of the market and the pricing environment is "tougher," Fields explained. The cutback on production in response is "very consistent with our strategy of matching production to demand" to keep inventories in check, Fields continued. In addition, demand for Ford's F-Series is "very strong."
"We saw a number of our competitors get very aggressive during the quarter in terms of incentives. But our share in that segment is actually up year over year, and we spend the least of all automakers in terms of incentives so that brand and those sales are quite strong on our F-Series," Fields noted.
As for individual markets, Europe is seeing "moderate growth," the U.K. was not really impacted by Brexit, China is "very strong," and South America is "very tough" because of the economic environment, he said.
For future investments, Ford is making a push in emerging opportunities, such as the shuttle company it's launching in San Francisco and five other cities in the next 18 months, Fields noted.
"When you think about autonomous vehicle, the impact that can have from a societal standpoint, from an environmental standpoint and a safety standpoint, we believe the autonomation of the vehicle is really going to be the story over the next decade and could have just as much fundamental change on society as Henry Ford's original moving assembly line," Fields said.
Ford still plans to have a fully autonomous vehicle in the market by 2021, he noted.
Shares of Ford were lower in early morning trading on Thursday.
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TheStreet Ratings team rates Ford Motor as a Buy with a ratings score of B-. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
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