Ford Motor Company on Wedneday reported net income of $US417 million, or 22 cents a share, for the second quarter of 2003, down over 27% compared with net income of $570 million, or 29 cents a share, in the second quarter of 2002.
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Ford made pre-tax profits of $718 million during the second quarter of 2003, compared with pre-tax profits of $1 billion in the second quarter of 2002.
But, during the first half of 2003, Ford made pre-tax profits of $2.1 billion, compared with pre-tax profits of $1 billion during the same period a year ago.
Second quarter 2003 revenue declined to $40.7 billion from $42.2 billion in the second quarter of 2002. Worldwide vehicle unit sales in the 2003 second quarter were 1,717,000, down about 7% from 1,854,000 a year ago.
On a pre-tax basis, Ford’s worldwide automotive sector reported a profit of $3 million during the second quarter of 2003, down $400 million compared with earnings of $403 million a year ago.
Worldwide automotive revenue declined by $1 billion from $35.2 billion during the second quarter of 2002 to $34.2 billion in the second quarter of 2003.
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By GlobalDataAutomotive cash, marketable securities, loaned securities and Voluntary Employee Beneficiary Association (VEBA) assets at June 30 rose to $28.7 billion, up from $26.6 billion at the end of the first quarter, and up from $25.3 billion at the end of 2002.
North America Automotive reported a profit of $445 million on a pre-tax basis, compared with a pre-tax profit of $921 million in the second quarter of 2002. The decline reflected lower production volume and lower net pricing, offset partially by strong cost performance.
North America Automotive revenue in the second quarter of 2003 was $20.7 billion, down about 10% from $23.1 billion in the second quarter of 2002. North America vehicle unit sales were down 12.5% in the second quarter of 2003 when compared with the second quarter of 2002.
The 2003 second-quarter pre-tax loss for International Automotive was $411 million, compared with a loss of $371 million during the second quarter of 2002.
Second-quarter 2003 revenue for International Automotive increased to $13.5 billion, compared with $11.8 billion during the second quarter last year.
Ford Europe incurred a pre-tax loss of $525 million in the second quarter of 2003, compared with a pre-tax loss of $18 million during the same period a year ago. The decline in earnings is primarily explained by lower net pricing, unfavourable model mix, lower industry volume and dealer stock reductions, offset partially by improved cost performance and market share. Ford Europe’s revenue in the second quarter rose 6% to $5.2 billion, compared with $4.9 billion during the second quarter of 2002.
The pre-tax loss for Ford South America narrowed to $69 million during the second quarter from a loss of $198 million during the second quarter a year ago, primarily reflecting favourable exchange (largely the non-recurrence of currency devaluation a year ago), improved net pricing and market share. Revenue in South America was $435 million in the second quarter, compared with $426 million in the second quarter of 2002.
During the second quarter of 2003, Ford Asia-Pacific incurred a pre-tax loss of $28 million, compared with a pre-tax loss of $53 million in the 2002 second quarter. The improvement reflected favourable net pricing and the successful launch of the new Australian Falcon. Revenue rose to $1.4 billion, compared with $1.0 billion during the second quarter of 2002.
Premier Automotive Group (PAG): PAG reported pre-tax earnings of $166 million in the second quarter of 2003, compared with a pre-tax loss of $122 million during the second quarter of 2002. PAG benefited from both cost and revenue improvements, with growing market acceptance of the Volvo XC90 and the recently introduced Jaguar XJ. Second-quarter revenue for PAG was $6.4 billion, up from $5.5 billion a year ago.
Ford Motor Credit Company reported net income of $401 million in the second quarter of 2003, up $71 million from earnings of $330 million in the same period a year earlier. On a pre-tax basis, Ford Credit earned $661 million in the second quarter of 2003 compared with $519 million in the second quarter of 2002. The increase in earnings primarily reflects higher income related to securitisations and a lower provision for credit losses, offset partially by the impact of lower receivables.
Hertz reported pre-tax earnings of $57 million in the second quarter, compared with $72 million during the same period a year ago. Strong cost performance was more than offset by unfavourable pricing and lower volume.
Ford expects a loss of about 15 cents a share in the third quarter of 2003, reflecting lower planned production volumes in the third quarter. The company, however, remains committed to its full year earnings guidance of 70 cents a share.
