"This is one of the strongest quarters in our recent history with our best automotive quarterly profit since 2000, record any quarter profit in North America and record second quarter profit in Asia Pacific. We have four more global vehicle launches this year to complete the 16 planned and we're on track to deliver great results for the rest of the year," said CFO Bob Shanks in a statement
Ford Motor Company on Tuesday (28 July) said it was "on track for a breakthrough year" after posting its best automotive quarterly profit since 2000 in the second quarter of 2015.
Pretax profit of US$2.9bn was up $269m, or 10%, from a year ago while net income of $1.9bn was up $574m or 44%.
A record profit in Asia Pacific was offset by Europe remaining "about break-even" and, though wholesale volume was up 2% (35,000 units to 1.696m), driven by North America, revenue was down $0.1bn to $37.3bn with higher prices and volume offset by the strong US dollar.
Global market share grew to 7.6%, up one tenth of a percentage point from a year ago.
Ford has left its 2015 pre-tax profit guidance unchanged at $8.5bn to $9.5bn with higher automotive revenue, operating margin and operating related cash flow expected compared with 2014.
North America pre-tax profit was a quarterly record $2.6bn, up $157m from last year’s also record profit. Delays ramping up redesigned F-150 production bit into market share but unit wholesales rose nonetheless by 56,000 vehicles to 816,000 and revenues $2.1bn to $23.3bn. Full year pretax profit is expected to exceed last year’s result.
South America remained difficult territory. Wholesales dipped 16,000 units to 98,000, taking revenue down $0.6bn to $1.5bn, but the pretax loss improved $110m to $185m in the red. Ford said pricing was better and it expects a smaller loss in the full year.
Europe boosted wholesales 13,000 to 389,000 but revenue fell $1bn to $7bn and pretax loss widened $28m to $14m. The automaker cited currency effects and a lack of dealer stock increases but said a reduced loss was still expected for the full year.
Asia Pacific was a bright spot as second quarter pretax profit records fell with a $33m rise to $192m despite a 13,000 unit wholesales dip to 349,000 and revenue off $0.5bn to $2.4bn. Ford cited lower volume and weaker currencies but expects an improved second half.
"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 Ford president and CEO Mark Fields.