Ford's in the Money: Automaker Posts Record Profits Because You Love Trucks

Matthew Guy
by Matthew Guy
ford s in the money automaker posts record profits because you love trucks

News from Dearborn this morning will please recent purchasers of F-150s, Transits, and Fiestas — Ford Motor Company is absolutely on fire financially, earning $2.5 billion in a very large first quarter.

Ford’s pre-tax profit of $3.8 billion was a record for the company.

Net income at the Glass House more than doubled from last year’s $1.2 billion, translating into a record operating margin of 9.8 percent. Ford’s global market share is up by two-tenths of a percentage point ( to 7.1 percent), thanks to sales gains in North America, Europe, and Asian-Pacific markets.

“The first quarter was an absolutely terrific start to the year — an all-time record for the company, with very strong performance across the business,” Ford president and CEO Mark Fields said in a statement.

Ford reported after-tax earnings of 68 cents per share, up from 39 cents just a year ago.

Record gains in North America tempered losses in the South American market, where things are tough all around thanks to the recession in Brazil. Tanking oil prices and political strife caused losses in the African and Middle Eastern markets as well.

Unsurprisingly, high-profit vehicles such as the F-150 and cash cow SUVs are responsible for much of the North American gains. This time last year, Ford was struggling with low F-150 inventories due to preparations for building the pickups out of aluminium.

Making scads of dough is always a good thing, doubly so when it shifts the conversation away from all the truck recalls we reported on yesterday.

[Image: Ford Motor Company]

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21 of 92 comments
  • Superdessucke Superdessucke on Apr 28, 2016

    They may be building more in Mexico but the profits come right back here to the one percenters in the good 'ol USA. ' Murica!!

    • See 3 previous
    • Bball40dtw Bball40dtw on Apr 29, 2016

      @28-Cars-Later It will be the last product (well maybe after Mustang) that Ford henchos for American consumption. They've moved production of medium duty trucks back here after they got out of the Navistar fiasco. Dearborn Truck, Kansas City Assembly, Kentucky Truck, and Avon Lake will all be building Ford trucks for a very long time. They'll hencho all their cars though.

  • Inside Looking Out Inside Looking Out on Apr 28, 2016

    When Ford starts making record profits from trucks and SUVs I get concerned. Are they going to buy AM, Jaguar and LR back, stop development of new Ford and Lincoln cars and dump cars into rental fleets?

  • DeadWeight DeadWeight on Apr 28, 2016

    *What's odd (or not) is that there are breaking newswire report that Ford is idling F150 production for one week as of tomorrow due to "excessive inventory" (over 286,000 F150s on dealer lots at last count). Maybe Q1 really was as good as it gets with a slowdown coming?

    • See 7 previous
    • Bball40dtw Bball40dtw on Apr 29, 2016

      The week shutdown has nothing to do with Ford being worried about truck sales. They finally have large enough inventories to make this move. DTP will still be cranking out three shifts of F150s. They need to do this now, because KCAP F150 production is lagging behind where it should be.

  • Chocolatedeath Chocolatedeath on Apr 28, 2016

    Ford should stop making these. THey are not thinking about the 35k plus folks who will die due to these being on the roads.