In this series, we’ve already discussed how Ford’s (F) car segment sales fell significantly in the first 11 months of fiscal 2017. At the same time, the company’s trucks and utility vehicle segment sales remained strong. Ford’s automotive segment’s revenues also remained firm in the first three quarters of 2017.
Stronger North America revenues in 1H17
In 1Q17, Ford reported a 3.5% YoY rise in its global revenues, which stood at $36.5 billion—compared to $35.2 billion in the same quarter the previous year. The higher revenues were mainly driven by a positive product mix despite a fall in its North America revenues.
In 2Q17, Ford’s automotive segment’s revenues came in at $37.1 billion, which is ~0.5% higher than its revenues in 2Q16. During the quarter, the company’s North America revenues rose 3% despite a 1% YoY fall in its vehicle sales in the region. Ford’s management attributed these sales gains to higher net pricing and a continued positive product mix.
North America fell in 3Q17
In 3Q17, Ford’s global automotive revenues stood at $33.6 billion, which is ~0.9% higher than in 3Q16. Ford managed to beat analysts’ revenue estimates for the third consecutive quarter in 3Q17.
Unlike in 1Q17 and 2Q17, Ford’s 3Q17 revenues from North America fell ~4.0% due to an ~5% fall in its sales in the region. However, the company’s stronger revenues from Europe and some of its other international markets helped it maintain a positive revenue growth trend in the third quarter.
General Motors (GM) and Ford are the two largest US automakers (IYK) by volume. Other global auto giants like Japan’s Toyota (TM) and Italian-American Fiat Chrysler (FCAU) also generate a substantial portion of their revenues from North America.
Next, we’ll discuss how Ford’s margins looked in the first three quarters of 2017.