Ford Posts $1.9B Second Quarter Profit, Largest Since 2000
Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News.
The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for more money and offering fewer incentives, despite recent reports of F-150 incentives topping nearly $11,000 in some places.
Ford said revenues in North America surged 10 percent, which helped the company beat Wall Street’s expectations.
The 10-percent gain in revenue in North America is despite Ford’s slower-than-average sales compared to the overall industry average. Automotive News reported that the automaker achieved a 1.7-percent increase in sales for the second quarter compared to the industry average of 3.3 percent.
A slowdown in production of the F-150 is partially to blame for the sales shortfall. Building the redesigned F-150 at both of Ford’s plants has gone slower than normal, the automaker said, and inventory levels should return to normal in September.
The automaker said it increased its global market share one-tenth of a percent to 7.6 percent. Twelve of its 16 planned global launches have happened already this year, and Ford said the rest were on track. The company said it was still on track for an end-of-year, pre-tax profit of between $8.5 billion and $9.5 billion.
Ford posted a net loss in South American, European, Middle Eastern and African markets, but posted a $33 million gain in the Asia Pacific region, a 20-percent improvement over last year.
Ford Credit posed a $506 million pre-tax profit for the second quarter, a 17-percent gain.
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Ford currently has 1000s on the hood of some new f150 models. Not so sure about their "low inventory" explanation for sales shortfalls. More likely a conservative target market adopting a wait and see attitude to all the new, for pickups, tech. And, since every single discussion anywhere about pickups turned into brand warfare, were I to buy a halfton right now, I'd get an F150. If for no other reason, then because Ford remain the only make who retains the traditional extended cab. So I'm definitely not "anti Ford." Just pro smell testing press releases.
Hope this means more OneFord.
@VolandoBajo--GM is far from dead and the odds of Fiat-Chrysler dying are remote at best. GM and Fiat-Chrysler are much more likely to merge with another manufacturer but neither will die. Ford itself has come very close to dying several times in the past but they managed to come back. Now as for any American based auto manufacturer being Number 1 or 2 in the Global market that may never happen again. It appears VW has that title with Toyota not far behind and Toyota was Number 1 not too long ago and GM was Number 1 as well. US market does not make a global market, if it did VW would not be Number 1 since VW doesn't do that well in the US market. Much easier to judge things from a local perspective than from a global one. There is a whole other World once you leave the comforts of the US. Mitsubishi Motors is just a part of Mitsubishi Corp which owns financial institutions, makes electronics, makes aircraft, makes industrial equipment, and many other things. Whether Mitsubishi Motors stays in the US market no one knows for sure, but Mitsubishi has the resources to stay the course in the US vehicle market. Mitsubishi Motors does reasonably well in the global market. I think you are infused with too much Ford fanboy ism and cannot see the bigger picture.
@VolandoBajo--I do think that GM and Fiat-Chrysler as we know them now will either merge or be acquired by another manufacturer. As has been covered on this site that there will be more consolidation in the auto manufacturing industry. It could be that in the near future there will be only one domestic based manufacture that is left. Fiat-Chrysler has been looking for a merger partner and it would not surprise me if they eventually find one. GM with a heavy presence in Asia especially China could be acquired by a Chinese manufacturer or become a Chinese corporation. After reading about mergers in the appliance industry and the lawn equipment industry there are a few large players that control the lion's share of the market. General Electric just sold their appliance division to Electrolux a large Swedish corporation that makes appliances both large and small. Before the merger GE, Whirlpool, and Electrolux had about 85% of the US market with Samsung and LG hardly even registering. Electrolux owns Frigidare which was owned by White Westinghouse which bought Fridgdare from GM (White-Westinghouse was bought by Electrolux). In the lawn equipment industry MTD, Husquvarna, Toro-Lawnboy, and John Deere have most of the market. Husquvarna another Swedish based corporation owns Roper, Weedeater, and a few others and MTD owns Cub Cadet, Yardman, and a few others. John Deere at one time owned Green Machine, Jacobsen, and Homelite. VolandoBajo, I am not saying that this merger trend is great, it is what it is. As corporations become more global they become less distinctive. More products are designed for global consumption and manufacturers are under more pressure to contain and share costs. One of the only vehicles that is unique to the US markets is the full size pickups and some of the 2 door pony/muscle cars and even the new Mustang was designed for a global market. We are living in an ever changing World which has become more connected and more global in nature. As for the dependability of a certain brand I have had many Fords, GMs, Chryslers, Hondas, and a Mitsubishi and only a handful have been problematic. I presently have a 99 S-10 that I have had for almost 17 years that has been extremely reliable and my wife had a 2000 Taurus for 13 years that was very reliable. I am very particular about maintaining my vehicles and I believe that most of today's vehicles if properly maintained will provide many years of reliable service. My wife had a 77 Honda Accord for 17 years and I had a 77 Monte Carlo for 18 years both bought new and both well maintained.