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Ford (F) has reported a $1.2 billion profit for the third quarter, compared to a loss of $827 million during the same period last year amid a new deal with the United Auto Workers (UAW) union, reports say.
However, the automaker’s performance fell short of the expectations set by Wall Street analysts, the Associated Press reported.
Ford's revenue surged 11% when compared to the same quarter in the previous year, touching $43.8 billion. This was made possible by a strong sales boost.
Ford's adjusted quarterly earnings per share amounted to 39 cents. This was short of 46 cents a share that industry analysts had anticipated, AP said citing FactSet data.
Ford's financial results announcement coincided with a tentative contract agreement with the United Auto Workers (UAW) union. This four-year labor deal, which requires approval from the 57,000 union members in the company, carries significant implications for both Ford and the automotive industry as a whole.
The UAW has been engaged in a series of strikes at targeted factories run by major automakers, including Ford, General Motors, and Jeep maker Stellantis. The proposed agreement with Ford could potentially bring an end to this labor unrest, providing much-needed stability in the industry.
The Ford deal could set the pattern for agreements with the other two automakers, where workers will remain on strike. The UAW called on all workers at Ford to return to their jobs and said that will put pressure on GM and Stellantis to bargain.
“We told Ford to pony up, and they did,” President Shawn Fain said in a video address to members Wednesday night. He added that Ford put 50% more money on the table than it did before the strike started on Sept. 15.
Shares in Ford Motor Co., which is based in Dearborn, Michigan, were down almost 4% in after-hours trading following earnings report.