Ford Profit Increases Solidly in Third Quarter : Earnings: Soaring truck sales, company cost cutting and onetime tax credit help offset a loss on its foreign auto operations.

Overcoming the typical weakness of the third quarter for auto makers, Ford Motor Co. on Wednesday reported better than expected earnings on the strength of higher U.S. vehicle sales and record profit for its financing operation.

The company earned $463 million, or 79 cents a share, for the three months ended Sept. 30, contrasted with a loss of $272 million, or 66 cents a share, a year ago. Sales were $24.5 billion, up from $23.3 billion, as Ford boosted its share of the U.S. car and truck market to 25.4%, up from 24.3% at the same time last year.

“Things are moving in the right direction despite a weak recovery in the U.S. and a recession in Europe,” said David McCammon, Ford treasurer and vice president.

Ford’s U.S. automotive operations earned $333 million as truck sales soared, cost cutting continued and the company booked a onetime, $140-million income tax credit. Outside the United States, Ford’s auto operations lost $261 million--most of that in recession-wracked Europe, where the company believes economies have now hit bottom.

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The company’s financial services group had a profit of $391 million due to higher loan volume and reduced credit losses.

Overall, the performance exceeded Wall Street expectations. Ford’s stock rose Wednesday to a new 52-week high, closing up 62.5 cents at $60.375 on the New York Stock Exchange.

“They have done quite well in North America,” said Chris Cedergren, an analyst with AutoPacific Group. “It has been dictated by higher sales and lower marketing costs.”

Ford is the second of the Big Three to report third-quarter earnings. Chrysler Corp. reported strong earnings of $423 million last week. General Motors Corp., however, is expected to report a third-quarter loss today.

Ford’s U.S. sales increased 13% in the quarter, usually the weakest of the year because of production slowdowns for model changeovers. While car sales were down, sales of sport utility vehicles, minivans and pickup trucks soared. Ford sold 420,178 trucks, only 19,271 shy of its car sales.

The company attributed the improved sales to consumers’ need to replace aging vehicles, low interest rates that make financing new cars cheaper and higher used-car prices that have boosted trade-in values.

With the strong demand, Ford lowered its average sales incentive per vehicle to $865, down from $1,065 a year ago.

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Some analysts are concerned about Ford’s low profit margins on auto sales. On an operating basis, Ford made only $190 on each vehicle sold in the United States in the quarter. By comparison, Chrysler’s per-vehicle profit was $608.

But McCammon said the company expects improvements as the economy picks up, which would allow Ford to boost margins by reducing marketing costs. Ford is also cutting back on fleet sales, which are less profitable than those to consumers, and hopes to boost margins on such new models as the 1994 Mustang and the Windstar minivan.

Ford is running its factories at full capacity and will add overtime if demand rises, McCammon said.