Ford Motor Company’s Profit Hit $1.23 Billion For The Quarter
A majority of Ford Motor Company’s profits were from North America, but the company has hit significant results in other regions of the world. According to the Detroit News, Ford beat analyst expectations as their profits rose to $1.23 billion for Q2. Overseas, Ford almost broke even despite a rough European economy. Ford is also dealing with high infrastructure costs in Asia and unfavorable exchange rates in South America. Ford’s Asia Pacific Africa region hit their highest quarterly profit ever and their financial results were better than Q2 last year.
Ford’s profit hit $1.23 billion, which represents the company’s 16th consecutive profitable quarter. Ford earned 45 cents per share, compared to 30 cents last year. Analysts were expecting 37 cents per share.
“It just demonstrates the power of what happens when we’re able to get all parts of the business contributing more powerfully,” stated Ford chief financial officer Bob Shanks.
Revenue: Ford’s second quarter revenues jumped 14.4% to $38.1 billion. Ford increased their full-year expectations including 2013 pre-tax profits, which may surpass the company’s $8 billion total for 2012. Ford is predicting that their U.S. industry sales is expected to hit 15.5 to 16 million cars and light trucks. Ford’s profit margin in North America was 10.4%.
Europe: Ford lost $348 million in Europe, which is less than the $404 million that they lost there during Q2 of last year. Ford was expected to lose $2 billion in Europe this year since auto sales have hit 20-year lows there, but this figure has been revised to $1.8 billion today. This is about the same as last year.
Asia-Pacific: Ford’s Asia Pacific region hit their best quarterly profit at $177 million.
South America: Ford reported $151 million in South America profits.
“Over the next several years, you’ll start to see operations outside North America take on more and more significance,” added Shanks. “I think you’re starting to see what’s possible.”
Pension Obligations: Ford has settled $1.5 billion in pension obligations related to a 2012 U.S. salaried retiree voluntary lump sum program. Ford also settled $2.7 billion and offered the plan to around half of the eligible retirees.