DETROIT — Ford Motor Company reported a significant decline in its net profit for the third quarter, dropping close to 26% due to a hefty $1 billion accounting charge associated with the cancellation of a planned three-row electric SUV.

The automotive giant, based in Dearborn, Michigan, disclosed its financial results after the markets closed on Monday. The net profit for the period from July to September amounted to $892 million, down from $1.2 billion during the same timeframe a year prior.

When adjusting for the one-time costs, Ford recorded a pretax profit of $2.6 billion, translating to 49 cents per share, which exceeded analysts’ forecasts of 46 cents according to FactSet data.

The company experienced a 5.5% increase in revenue, totaling $46.2 billion, surpassing the expectations set by Wall Street. CEO Jim Farley emphasized that Ford has implemented tough measures aimed at positioning the company for a competitive edge in the market. The accounting write-down and decision to cancel the electric SUV were announced back in August.

In its most lucrative market, the United States, Ford’s vehicle sales saw a modest uptick of just under 1%, with approximately 500,000 units sold during the quarter.