Ford Motor Co. second-quarter earnings widely beat Wall Street expectations, based on the continued strength of its North American sales.
Ford maintained its full-year 2015 forecast of an operating profit of between $8.5 billion to $9.5 billion.
Ford made a net profit of $1.89 billion, or $0.47 per share. There were no one-time items and the 47 cents per share beat analyst expectations of 37 cents per share, according to Thomson Reuters I/B/E/S.
Ford’s quarterly revenue of $37.3 billion also beat expectations of $35.34 billion.
“We delivered an outstanding second quarter, a great first half of 2015, and we are confident the second half of the year will be even stronger,” said CEO Mark Fields, in a statement. “The entire Ford team is focused on accelerating our One Ford plan, delivering product excellence and driving innovation in every part of our business.”
It was Ford’s best quarter for its automotive business since 2000. North America was especially strong, as the industry theme of car makers making a lot of money by selling SUVs and big pickup trucks continued. The US market is expected to see sales of 17-18 million new vehicles in 2015.
Prior to Ford’s earnings report, there was concern that a retooling of the F-150 full-size pickup to use more lightweight aluminum would be a drag on profits. Availability of the F-150 has been curtailed, but on its face, this issue doesn’t seem to have hurt Ford in the second quarter. After a sluggish start for the rollout of the new truck — for decade America’s best-selling vehicle — analysts who follow Ford expect sales to pick up in the second half of the year.
“We sell more than the F-150,” said CFO Bob Shanks in an interview. “We can make money on other things.”
He added that for the pickup, Ford is currently adjusting the mix of vehicle features and trim levels to meet customer demand. “We’re not done in how people can spend money on F-150,” he said.
In the auto industy, all eyes are on China and the slowdown in its massive economy. Ford didn’t raise any red flags on that front. The company has been rapidly establishing its business in China, after lagging competitors such as General Motors and Volkswagen.
“We expect China to decline or at best be flat,” Shanks said, while noting that Ford is bringing a new plant online in the second half of the year and preparing to introduce four new vehicles. “We held our own,” he said, pointing out that Ford gained market share in China in the second quarter.
Ford was up slightly in pre-market trading on Tuesday, by 2% after a Monday close of $14.55.
