Ford makes $2B in second quarter, up 3.7%

Ford makes $2B in second quarter, up 3.7%

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 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.



Related Posts

Kaspersky launches free antivirus worldwide
Founded in 1997, Kaspersky Lab grew rapidly through the 2000s to become ow of the world's leading anti-virus software companies. Kaspersky has always charged a premium price for its antivirus product, and rightfully so.

Texas Senate votes to curb transgender access to public bathrooms
The author of SB 3 , Sen. "I don't believe that it's right for boys to compete against girls in those UIL events", Kolkhorst said. The Senate began debating 17 bills Monday that senators worked night and day to push through committees over the weekend.

White Sox Agree To Trade Anthony Swarzak To Brewers For A Prospect
The versatile fielder has made starts at all three outfield positions this season, as well as 12 games at third base. Across 48 1/3 innings, Swarzak is 4-3 with 1 save and 10 holds on the year.

Amber Rose talks about her 'heart break' over Kanye West
In fact, in one interview, she said that her "real love" was her husband, Khalifa. She was so devastated that she even considered suicide.

Snakes smuggled into United States in potato chip cans
Rodrigo Franco, 34, was scheduled to be arraigned Tuesday afternoon in Los Angeles on a charge of illegally importing merchandise. Their import or export is banned under the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Russian hooligans trick Rick Perry into talking about manure
In Russia, the pranksters, Vladimir Krasnov and Alexei Stolyarov , are mostly known by their nicknames Vovan and Lexus. The minister in general promised to discuss this or that issue during his visit to Kiev in August of this year.

Evie Clair performs 'I Try' at Judge Cuts
America's Got Talent now airs on TruTV in the United Kingdom on Tuesdays at 8pm. Goehring is the seventh contestant to head straight to the live rounds.

Nokia to unveil flagship Android Phone August 16th
The next two releases from the company are expected to be that of the budget Nokia 2 and the flagship Nokia 8 smartphone. If Nokia 8 will launch on August 16 as expected then it will probably launch in India after few months.

William and Kate are hiring and posted the ad on LinkedIn
The ad states that applicants must have extensive experience within a marketing, media or PR office and, ideally, experience working within the charity sector.

Dad leaves 10-year-old daughter in desert without water after argument
He also said that he had wanted to leave her alone in the desert for 15 minutes for better to come retrieve it later. Deputies determined that the girl lived in the 3500 block of East John L Avenue with her younger brother and Watson.

© 2015 ExpressNewsline. All Rights reserved.