Ford Posts Record Results
April 28 2016 - 8:00AM
Dow Jones News
Ford Motor Co. delivered record results in the first-quarter
amid strong truck sales, with net income more than doubling in the
period and an operating margin in the core North American unit
rivaling those returned by high-end luxury brands.
Ford reported net income of $2.5 billion, or 61 cents a share,
up from $1.2 billion, or 29 cents a share in the first quarter of
2015, a period negatively affected by short supplies of its biggest
money maker, the F-150 truck. On an operating basis, the company
earned 68 cents per share.
The results beat analyst expectations of 48 cents a share. The
company's closely watched North American operating margin equaled
12.9%, an all-time record during the three-month span, and far
higher than the 8.7% at rival General Motors Co.
Ford's performance comes amid continued sales growth in the U.S.
light-vehicle market. Low gasoline prices have spurred demand for
the most profitable vehicles on dealer lots—trucks and SUVs,
leading to robust profits for Detroit's Big Three and other major
players in the American market.
Ford's revenue increased 11% to $37.7 billion, up from $33.9
billion in the same period a year ago.
Robust demand for Ford's pricier trucks, including the
best-selling F-150 pickup, in the U.S. continued to drive its
operating profits in North America, which nearly doubled to $3.1
billion in the first quarter versus a year ago.
Ford posted its best quarter in Europe since 2008, swinging to a
$434 million pre-tax profit from a $42 million loss in the same
period in 2015, a further indication that the company's
restructuring efforts in the long-troubled region are producing
results.
Profit in Asia Pacific doubled to $220 million vs. $105 million
a year ago amid growth in China, while the loss in South
America—which is suffering from wider economic malaise—widened to
$256 million.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
April 28, 2016 07:45 ET (11:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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