Ford Shows Gains in Every Region
DETROIT (TheStreet) -- Ford
The automaker said it earned $1.2 billion, or 30 cents a share, in line with estimates. Revenue rose 14% to $38.1 billion. Analysts surveyed by Thomson Reuters had estimated $35.2 billion.
In the same period a year earlier, the company earned $1.1 billion, or 4 cents a share.
Ford's pretax profit was $2.6 billion or 45 cents a share, compared with 30 cents in the same period a year earlier.
"Our strong second quarter with improved results in every region around the world is another proof point that our One Ford plan is continuing to deliver and is building momentum," said CEO Alan Mulally, in a prepared statement. "We are providing profitable growth for everyone associated with Ford."
In premarket trading two hours before the opening bell, Ford shares were up 53 cents to $17.47.
Looking ahead, Ford said it now expects total pretax profit to be equal to or higher than the 2012 level.
Ford said its North American division set quarterly and first-half records for pretax profits while Asia Pacific Africa delivered its best ever quarterly profit. South America returned to profitability while Europe showed improvement, and Ford Credit reported a pretax operating profit of $454 million.
In North America, pretax profit was $2.3 billion, an improvement of $319 million. In South America, pretax profit was $151 million, up from $5 million in the same period a year earlier. In Asia Pacific Africa, the pretax gain was $177 million, compared with a year-earlier loss of $66 million.
In Europe, the pretax loss was $348 million, an improvement over a $404 million loss in the same period a year earlier. The full-year loss in Europe is expected to be about $1.8 billion, compared with prior guidance of a loss of about $2 billion.
"Europe is making very good progress in executing our transformation plan, which is focused on product, brand and cost," said Chief Financial Officer Bob Shanks. "Our strong cadence of new product introductions, matching supply with real demand and focusing more on retail customers will enable us to meet our goal of being profitable in Europe by mid-decade."
In the second quarter, the company settled $1.5 billion of pension obligations related to the U.S. salaried retiree voluntary lump sum program, leading to a special item charge of $294 million, reflecting the acceleration of unrecognized losses in the plan.
-- Written by Ted Reed in Charlotte, N.C.
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