Published On: Tue, Jul 28th, 2015

Ford Releases Impressive Quarterly Results

Ford F-150

The new Ford F-150.

Today Ford announced its best quarter since 2000 with net income jumping 44 percent to $1.9 billion in the second quarter as a result of record North American vehicle sales.

The company posted earnings of 47 cents per share, up from 40 cents per share a year the previous year beating Wall Street’s expectations by 10 cents.

“We delivered an outstanding second quarter, a great first half of 2015, and we are confident the second half of the year will be even stronger,” said Mark Fields Ford’s chief executive, in a statement.

Higher prices of their vehicles due to new products and consumers’ preference for larger vehicles helped the U.S. business recover from a slower than expected performance over the first three months of the year.

Ford’s performance outside of North America was less impressive. Prior to taxes, the car manufacturer lost $14 million in Europe, lost $185 million in South America, lost $46 in the Middle East and Africa whilst making $192 million in Asia Pacific. Despite a slowdown in the Chinese automotive industry Ford posted a record-high 4.6% market share in the country and record sales in its Asia-Pacific region.

Ford’s CFO Bob Shanks blamed poorer international earnings on the stronger dollar. Whilst Asia Pacific performed well this quarter Ford did lower its sales expectations for China to 23-24 million vehicles as the country’s economy slows whilst still maintaining its target of 30 million by 2020.

“We’re still very bullish on China, but it’s going to go through its fluctuations. That’s what happens in emerging markets,” said Ford’s CEO Mark Fields.

For the full year Ford said it expects a pre-tax profit between $8.5 and $9.5 billion for 2015 in what has been called a “breakthrough year” by CEO Mark Fields for the automaker.

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