Ford Motor Company reported third quarter 2014 financial results last month, posting net income of $835 million, or 21 cents per share, on revenue of $34.9 billion. Even though the results represent Ford’s 21st consecutive profitable quarter, they’re down on a year-over-year basis.
Compared to the third quarter of 2013, FoMoCo’s net income dropped $437 million, or 10 cents per share, while revenue dropped $900 million. In fact, most of the automaker’s financial metrics declined on some level. Partly responsible for the drop is the European division, which is continuing to implement its transformation plan focused on product, brand, and cost.
Here’s how Ford Europe fared in Q314.
Sales Volume, Market Share, Revenue
Ford Europe wholesale volume was 321,000 units and revenue was $6.9 billion, up 6 percent and 7 percent, respectively.
The higher volume reflects a 700,000-unit increase in the Europe 20 SAAR, to 14.5 million units, higher market share and lower dealer stock reductions than a year ago. The increase was offset partially by lower volumes in Russia and Turkey. The region’s higher revenue reflects higher volume in the Europe 20 markets.
Share of the Europe 20 markets was at 8.4 percent, up 0.4 percentage points from a year ago. This was driven by a 0.5 percentage point improvement in Ford’s retail passenger share of the five major European markets, to 8.8 percent, thanks in part to the effect of Ford’s expanded SUV lineup.
The higher overall market share was also driven by a 2 percentage point improvement in commercial vehicle market share, to 13 percent, reflecting the success of Ford’s full line of new Transit vehicles and continued strong performance of the Ranger pickup.
Ford Europe posted a pre-tax loss of $439 million, down $257 million from a year ago. The decline, according to Ford, is more than explained by the following three factors:
- An adverse environment in Russia
- Balance sheet exchange effects
- Other factors, including lower component pricing and non-recurrence of prior year gains
For the full year, Ford continues to expect Europe to incur a loss of about $1.2 billion, an improvement compared to 2013.