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 Ford's Chief Financial Officer Bob Shanks said lower costs helped
boost the company's pretax profit in North America to a record $2.44
billion. Nine analysts surveyed by Reuters expected a pretax profit
of $2.04 billion.
Costs in the second half of the year are expected to rise as the
company introduces more products, including the most important
vehicle in its portfolio, the F-150 pickup truck. The company's
operating margin in North America improved to 11.6 percent, from
10.6 percent a year ago.
Ford affirmed its full-year guidance for a pretax profit of between
$7 billion and $8 billion.
The company's outlook for South America was downgraded to a greater
loss than previously expected. It now anticipates breaking even or
taking a loss in the second half of the year.
For the quarter, South America showed a loss of $295 million,
against a loss of $182 million expected by nine analysts surveyed by
Reuters.
The Asia-Pacific region's operating profit of $159 million was less
than the $260 million expected, on average, by analysts surveyed by
Reuters. Shanks said most of that profit came from China, but he
didn't give a breakdown.
Ford's market share in China, the world's biggest car market, rose
to a record 4.6 percent.
Profit in Europe, the first for the company in the region in three
years, "clearly shows that the transformation plan is working," said
Shanks of Ford's restructuring efforts that have included the
closing of a plant in Belgium.
One-time items in the quarter included an accounting charge of $329
million because of poorer-than-expected cash flow in Russia, where
Ford's has a joint venture with Russian carmaker Sollers.
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The quarter was Ford's last one under the leadership of Alan Mulally,
who retired as chief executive officer, making way for current CEO
Mark Fields.
Excluding one-time items, Ford earned a profit of $2.6 billion, or
40 cents per share, which topped the 36-cent-per-share forecast by
analysts surveyed by Thomson Reuters I/B/E/S.
Net income in the quarter was $1.3 billion, or 32 cents per share,
up from $1.23 billion, or 30 cents per share, a year earlier.
Quarterly revenue of $37.4 billion compared with $37.9 billion a
year ago.
The F-150 will begin production at Ford's Dearborn truck plant in
October, and at its Kansas City, Missouri plant early next year.
(Reporting by Bernie Woodall; Editing by Bernadette Baum)
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