USA - Ford Motor Company announces Q2 results, growth and increased profits, Best Quarter since 2000.

Ford Motor Company [NYSE: Ford] today reported its 2015 second quarter financial results. 

Highlights Include:

• Outstanding second quarter; company on track for a breakthrough year

• Pre-tax profit of $2.9B, up $269M or 10 percent from a year ago excluding last year‘s special item charges

• Net income of $1.9B, up $574M or 44 percent from a year ago

• After-tax earnings per share of 47 cents, up 7 cents from a year ago excluding last year’s special item charges

• Best Automotive quarterly profit since 2000

• Wholesale volume up 2 percent, driven by North America and Europe

• Automotive revenue about equal, with higher net pricing and volume offset by unfavorable translation effects of the strong U.S. dollar on international operations

• Global market share grew to 7.6 percent, up one-tenth of a percentage point from a year ago

• 12 of 16 planned global new product launches completed; remainder on track

• Introduced SYNC® 3, the all-new communications and entertainment system

• Continued strong profit at Ford Credit; pre-tax profit of $506M

• Ford Smart Mobility plan moved from research to start of implementation; Ford Credit launched car-sharing pilot in six U.S. cities and London

NORTH AMERICA

Pre-tax profit was an any-quarter record at $2.6 billion, up $157 million from last year’s record profit. Favorable volume, mix and net pricing were offset partially by higher costs and unfavorable exchange. 

Higher wholesales reflect the non-repeat of last year’s stock reduction and higher industry sales. Market share was a partial offset driven by lower availability of F-150. 

Higher revenue was driving by higher volume, net pricing and favorable mix; effect of the strong U.S. dollar was a partial offset. North America’s pre-tax profit is expected to exceed last year’s result. 

SOUTH AMERICA

Ford continues to benefit from the strategy of replacing legacy products with One Ford products, even in a difficult business environment. The new Ka drove strong share gains, which at 10 percent, was up 1.1 percentage points. 

In Brazil, Fusion continues to lead its segment, and as a result of the success of the F-Series and Cargo, Ford led the light and semi-light truck segments. In Argentina, Ford continued to rank second in sales, and EcoSport and Mondeo led their segments. Wholesale volume was down 14 percent due to lower industry sales. 

This, along with weaker currencies, resulted in a 29 percent decline in revenue. Pre-tax results improved from a year ago due to higher net pricing. For the full-year, pre-tax loss is expected to improve from 2014. 

EUROPE

Ford continued its European transformation plan focused on product, brand and cost. Wholesale volume improved 3 percent compared with a year ago as a result of higher Europe 20 industry sales, as well as higher industry sales and Ford share in Turkey. 

These factors were offset partially by the non-repeat of last year’s dealer stock increase. Revenue was down 14 percent due to the adverse translation effects of the strong U.S. dollar. Pre-tax results were largely unchanged from a year ago, however, the underlying operating performance in Europe improved. 

Ford’s results did not benefit from the usual seasonal stock increase or last year’s one-time reserve release. Volume and mix were favorable, and net pricing improved. Pre-tax loss expected to improve for the full year from 2014. 

MIDDLE EAST AND AFRICA

The company remains focused on building its distribution capability, expanding its product offering tailored to the needs of the region, and leveraging its global low-cost sourcing hubs. 

Wholesale volume and revenue declined 10 percent and 23 percent from a year ago, respectively. Lower volume was a result of unfavorable changes in dealer stocks due to production timing differences, while the lower revenue reflects the adverse translation effects of the stronger U.S. dollar, and lower volume. 

Pre-tax results declined compared with a year ago due to lower volume. For the full year, pre-tax results expected to be about breakeven. 

ASIA PACIFIC

Pre-tax profit was a record for the second quarter. The improved result was driven by lower costs and favorable exchange. In the quarter, wholesale volume decreased 4 percent from a year ago because of lower industry sales and market share. 

Revenue, which excludes Ford’s China joint ventures, declined 15 percent, reflecting lower volume and weaker currencies. Ford expects 2015 to be a strong year, with results improving in the second half as compared to the first half, as new manufacturing capacity comes online and the company launches new vehicles. 

For the full year, pre-tax results expected to be higher than 2014