Ford Earnings Surge; Chrysler Posts 26% Drop --- Ford's Net in Third Quarter Outpaced That of GM For Second Time in Row
DETROIT -- Ford Motor Co. outearned much bigger General Motors Corp. for the second consecutive quarter, reporting net income of $693.3 million, or $2.61 a share, for the period ended Sept. 30.</br></br>Ford's third-quarter profit was more than double the $313.1 million, or $1.13 a share, earned a year earlier.</br></br>Meanwhile, Chrysler Corp.'s third-quarter net income fell 26%, to $234.9 million, or $1.60 a share, from $316.2 million, or $1.83 a share, a year earlier. Per-share figures for Ford and Chrysler have been adjusted to reflect 3-for-2 stock splits on June 1 at Ford and March 5 at Chrysler.</br></br>Ford attributed its earnings increase from a year earlier to higher wholesale unit sales, a more profitable product mix, improved productivity and a net gain of $102 million, or 38 cents a share, from the previously reported sales of its North American paint operation and its 70% stake in Starnet Corp. Chrysler said costs of developing and launching new products helped push its third-quarter earnings below the year-earlier level.</br></br>Ford shares spurted $3.875, to $59.125, in active trading, and Chrysler climbed $1.125, to $37.75, both in New York Stock Exchange composite trading.