Ford Motor Co ( F ) announced a profit for its second quarter that rose compared to the same period a year ago.
Full-year guidance did shift upward due to the tax change.
But the number two USA vehicle maker also leaned heavily on consumer discounts during the quarter, and the cost of its inventories rose; the company warned that its full-year automotive operating margin and cash flow would be lower than in 2016.
Ford earned $2.2 billion in North America, its biggest market.
Adjusted profits of 56 cents per share easily surpassed Wall Street expectations of 43 cents, according to analysts polled by FactSet.
Revenue was $39.9 billion for the April-to-June period versus $39.5 billion a year ago, despite weaker global volumes, including a 3% decline in the US new-car sales in the U.S.in the second-quarter and lower deliveries in Europe due to the changeover to a new Fiesta small auto.
Hackett, who had run the company's mobility efforts, is tasked with reshaping the automaker in the face of declining sales across the industry in the US and potential competition from deep-pocketed tech companies.
In Asia Pacific, Ford swung to a $143 million operating profit from a year-earlier loss of $8 million, as sales and market share in China improved during the quarter. It was Ford's ninth consecutive quarterly profit in Europe, but results were hampered by Great Britain's decision to leave the European Union and lower volume as Ford launched a redesigned Fiesta in the market. For the full year, Ford said it expects to lose less money in South America than in 2016. It was the credit arm's best quarter since 2011.
Wednesday's earnings report was the first under Hackett's tenure, who replaced Mark Fields in late May. Ford Credit's revenue rose 7 per cent to $2.7 billion in the quarter. Shanks said the company is adjusting its plans and expects to invest more in SUVs, commercial vehicles, mobility and other growth areas.
David Kudla, CEO and chief investment strategist with Mainstay Capital Management, said in a note ahead of Ford's earnings that strong SUV, truck and crossover sales are helping Ford boost its average transaction prices, but an expected overall sales slowdown will hamper the company's share price.
Ford raised its guidance for Ford Credit to better than the $1.5 billion pre-tax profit it had projected, although it did not provide specifics.