Ford’s revenues in the third quarter
In the third quarter, Ford Motor Company’s (F) global revenue stood at $37.6 billion, an increase of ~3.0% from its $36.5 billion revenue in the third quarter of 2017.
The company’s revenue from its Automotive segment also witnessed a YoY (year-over-year) rise in the quarter.
Automotive revenue versus sales
Ford’s third-quarter automotive revenue was at $34.7 billion, up 3.3% from $33.6 billion in the third quarter of 2017. In contrast, the company saw a 10% YoY drop in its global wholesale volumes in the last quarter. Overall, a favorable product mix driven by high demand for pickup trucks and utility vehicles and high-end versions of vehicles, especially in North America, helped Ford boost its third-quarter automotive revenue.
Solid home market performance
In North America, Ford reported revenue of $22.3 billion in the third quarter. This showcased a ~6.7% increase from $20.9 billion in the third quarter of 2017. The company managed to report these YoY gains in revenue in the region despite a ~0.9% YoY fall in its North American wholesale volumes. These wholesale volumes were primarily affected by lower US demand for passenger cars along with lower sales in Canada and Mexico.
Ford makes most of its revenue in the North American market. Similarly, other automakers (XLY) General Motors (GM), Fiat Chrysler Automobiles (FCAU), and Toyota Motor (TM) also generate significant portions of their revenue in the North American market. In 2017, Ford, Tesla, and GM garnered ~60.0%, 53.0%, and 76.0% of their total revenues, respectively, from the US market. FCAU generated ~62.0% of its revenue from North America in 2017.
Next, we’ll see what other factors boosted Ford’s North American performance in the third quarter.