Ford Motor Co (F.N) reported sharply higher quarterly profit on Tuesday, driven by its record quarterly performance in North America, but the automakers' shares fell 5 percent after its results fell short of Wall Street estimates.
Ford executives also cautioned that year-end sales promotions could cut into North American profit margins during the current quarter. Ford has told dealers in the United States that it plans next week to launch a new drive to boost sales during the last two months of the year. The new "Friends and Neighbors" program would offer vehicles to all buyers at the so-called X plan price, which is usually a small markup above the dealers' invoice price, according to people familiar with the program. X plan prices are usually limited to people with business or personal connections to Ford or its employees.
A Ford spokesman declined to comment.
Net income rose to $1.9 billion in the third quarter from $1.1 billion a year ago. After taxes, earnings excluding one-time items were 45 cents a share, one penny short of the consensus analyst estimate. The company said the shortfall was due to taxes that came in higher than analysts expected.
Ford shares fell 79 cents to $14.89 on the New York Stock Exchange.
Ford and its Detroit-based rival, General Motors Co (GM.N), both earn the bulk of their profits selling trucks and sport utility vehicles in the United States. The average transaction price for an F-series truck rose about $2,000 to $42,000 in the latest quarter, Ford Chief Financial Officer Bob Shanks said.