Ford Q3 Core Profit Edges Up to $2.7 Billion Despite Rising Commodity Costs

Ford’s third-quarter core profit increased slightly to $2.7 billion, Reuters reported on October 28, as the Michigan automaker overcame production struggles with its best-selling F-150 trucks and higher commodity costs. Adjusted earnings of 49 cents per share beat LSEG analyst forecasts of 40 cents. Revenue was $49.5 billion and net income was $2 billion.

Costs are the story behind the beat. Ford raised its full-year estimate for commodity costs to nearly $2.5 billion from about $2 billion, citing the conflict in the Middle East, rising copper and steel prices, steeper fuel costs and higher chip prices. Production of F-150 trucks was disrupted last month for nearly a week by an undisclosed supplier issue, on top of the effort to recoup an earlier production hit after a fire last year at Novelis, a key aluminum supplier in New York. CFO Sherry House told reporters that Novelis’ operational recovery is largely behind Ford.

Ford raised the lower end of its annual guidance by $500 million to $10.5 billion, keeping the higher end at $11 billion in earnings before interest and taxes, and said it expects 2027 core profitability to be roughly in line with 2026. It is also running leaner: CEO Jim Farley said Ford aims to keep about a 55- to 60-day supply of vehicles, versus the typical 80 to 100. Shares fell about 1.5% after the bell and are down about 10% this year, while GM is up about 1% — the market is rewarding the profit, but not yet the cost outlook.