Ford sees profits fall 56% due to recall costs

US automaker Ford Motor made a solid beat on its earnings for the third quarter, but net income still fell 56% due to recall expenses incurred from a batch of domestic vehicles with faulty door latches.

Improving results in China and Europe were offset by the $600m recall charge booked during the quarter.

Net income was just short of $1bn, with the company having recorded $2.2bn in the corresponding period one year ago in a record quarter which included the introduction of the F-150 pickup vehicle.

The car manufacturer, which is one of the "Big Three" in the United States along with Fiat Chrysler and General Motors, earned 24 cents per share in Q3 compared with 55 cents per share a year earlier.

Revenue also declined by 6% to $35.9bn, but Ford did reaffirm its annual forecast of $10.2bn adjusted pre-tax profit.

"This quarter, we delivered key elements of our growth plan by fortifying our core business with the launch of the all-new Super Duty pickup, transforming Lincoln with the new Continental and investing in emerging opportunities with the acquisition of the Chariot crowd-sourced shuttle service," said chief executive officer Mark Fields.

"Importantly, we remain on track to deliver one of our best profit years ever," he added.

Both of Ford's rivals also posted better-than-expected earnings for the third quarter, despite concerns that the auto industry had reached a sales peak.