P&A Providers & Administrators
MenuMENU
SearchSEARCH

Record North America Profit Boosts Ford Results

July 24, 2014
3 min to read


Ford Motor Co reported second-quarter operating earnings that beat expectations thanks to record profit in North America, boosting its shares more than 1 percent in early trading, reported Reuters.


Pretax profit in North America of $2.44 billion and the company's first profit in Europe in three years offset weaker-than-expected results in Asia Pacific and South America.

Ad Loading...


Chief Financial Officer Bob Shanks said lower costs boosted the company's performance in North America. Nine analysts surveyed by Reuters expected a pretax profit of $2.04 billion.


Costs in the second half of the year are expected to rise as the company introduces more products, including the most important vehicle in its portfolio, the F-150 pickup truck.


Ford's new chief executive, Mark Fields, said during a conference call he was "confident" the F-150 would launch on time without the quality problems sometimes associated with new-vehicle launches.


A limited number of new F-150 trucks, which will be about 700 pounds lighter than the current version, will be available later this year.


The company's operating margin in North America improved to 11.6 percent, from 10.6 percent a year ago.

Ad Loading...


Ford affirmed its full-year guidance for a pretax profit of between $7 billion and $8 billion. Last year, its pretax profit was $8.6 billion.


The company's outlook for South America was downgraded to a greater loss than previously expected. It now anticipates breaking even or taking a loss in the second half of the year.


For the quarter, South America showed a loss of $295 million.


The Asia-Pacific region's operating profit of $159 million was less than the $260 million expected by analysts. Shanks said most of that profit came from China, but didn't give a breakdown.


Ford's market share in China, the world's biggest car market, rose to a record 4.6 percent.

Ad Loading...


Profit in Europe "clearly shows that the transformation plan is working," said Shanks of restructuring efforts that included closing a Belgian plant.


Ford maintained its outlook for full-year profit in Europe in 2015.


One-time items in the quarter included an accounting charge of $329 million because of poor cash flow in Russia, where Ford has a joint venture with carmaker Sollers.


The quarter was Ford's last one under the leadership of Alan Mulally, who retired as chief executive and was credited with Ford's turnaround in his tenure that began in 2006.


Excluding one-time items, Ford earned a profit of $2.6 billion, or 40 cents per share, which topped the 36-cent-per-share forecast by analysts surveyed by Thomson Reuters I/B/E/S.

Ad Loading...


Net income in the quarter was $1.3 billion, or 32 cents per share, up from $1.23 billion, or 30 cents, a year earlier. Revenue of $37.4 billion compared with $37.9 billion a year ago.


Ford shares were up 1.5 percent at $18.06 in morning trading, after earlier jumping nearly 2 percent.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →