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Ford's Q2 profits smash expectations

7:11 AM, Jul 24, 2013   |    comments
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(USA TODAY) - Powered by record profits in North American, Ford Motor said Wednesday that its net income increased in the second quarter to $1.2 billion, up $193 million from $1 billion, on an increase of revenue from $38.1 billion, up $4.8 billion.

The automaker's results smashed through analysts estimates and the automaker surprised Wall Street by saying it expects to do better in the second half than it earlier forecast.

The automaker says performance of all its units around the world increased from a year ago, and that North American operations led the way. In the U.S., Canada and Mexico, it was a record quarter and record first half.

Ford says it is expecting U.S. sales for all makers this year could reach as high as 16 million. If that mark is achieved, it would be the first time since the better years of the last decade.

Pre-tax profit for the quarter was $2.6 billion, or 45 cents per share, an increase of $726 million, or 15 cents per share, higher compared with a year ago.

"Our strong second quarter with improved results in every region around the world is another proof point that our One Ford plan is continuing to deliver and is building momentum," said Ford CEO Alan Mulally in a statement.

One Ford is the automaker's strategy of trying to build as many models that can be sold across all global markets as possible. That avoids having to design different vehicles for different regions of the world. Indeed, Ford says its automotive operating margin improved to 6.4%, up 1.5 percentage points from last year.

In premarket trading, shares wee up 3.8% to $17.59.

USA TODAY

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