Ford Motor reported third-quarter 2024 results after markets closed on Monday, surpassing Wall Street expectations on both revenue and earnings per share.
The company posted Q3 revenue of $46 billion, above the anticipated $45.2 billion, and an adjusted EPS of $0.49, compared to the projected $0.42.
This marks Ford’s 10th consecutive quarter of year-over-year growth. However, the automaker continues to grapple with losses in its electric vehicle (EV) business, as third-quarter results show a significant financial impact from the segment.
In the third quarter, Ford’s U.S. retail sales grew by 3%, with total vehicle sales up by 1% compared to Q3 2023. Despite the sales growth, Ford’s EV segment was outpaced by competitors, with General Motors (GM) and Hyundai Motor Group leading in U.S. EV sales.
Ford sold 23,509 EVs in Q3, marking a 12% year-over-year increase, while GM’s EV sales reached 32,095 units, a 60% rise. This shift has placed GM ahead in cumulative 2024 EV sales, with 70,450 units to Ford’s 67,689.
Ford’s Model e division, dedicated to EVs, reported an additional $1.2 billion loss in the third quarter, bringing year-to-date losses for the segment to $3.7 billion.
The company attributes part of these results to a $1 billion EV-related charge as it reconfigures its strategy to address pricing pressures in the competitive EV market. Overall, Ford projects EV losses between $5 billion and $5.5 billion for the full year.
CEO Jim Farley indicated that while Ford is taking strategic measures to strengthen its EV and software development capabilities, the current industry environment remains challenging.
Despite the EV segment’s challenges, Ford Pro, the company’s commercial and software-focused business, continues to drive growth, with a 9% increase in volume and a 13% rise in revenue, generating $1.8 billion in operating profit.
