Ford posts earnings growth

  @CNNMoney July 24, 2013: 9:40 AM ET
ford earnings 072413

Strong U.S. sales helped Ford post a record second quarter profit in North America.


Ford Motor on Wednesday reported a large jump in quarterly profit, lifted by strong sales in its home market and a narrowing of losses in Europe.

The company, the No. 2 automaker in terms of U.S. sales, earned $1.8 billion excluding special charges, up 52% from year earlier. Revenue rose 14% to $38.1 billion as the number of vehicles sold worldwide rose 16%. The earnings and sales both beat analysts' forecasts.

The special charges were related to severance for job cuts in Europe as changes in its pension plans for U.S. white-collar workers. Even including those charges, net income rose 19%.

Shares of Ford (F, Fortune 500) were higher in early trading.

Fusion Plug-In: More room, lots of tech

The company said its North America unit set second-quarter and first-half records for pretax profit. Industry-wide, U.S. car sales have been strong due to an improving labor market, a rebound in home building and pent-up demand for cars from buyers. On Tuesday, Ford announced it has increased its plans to hire white-collar workers, primarily engineers, by 800 workers this year to help it meet demand.

Ford also benefited from increased U.S. market share during the period, due partly from increased demand for pickup trucks, an area in which the company is particularly strong.

But almost as important as the progress at home were the results from overseas. Its Asia-Pacific-Africa region posted its best quarter ever. Ford has been forced to play catch-up with rivals General Motors (GM, Fortune 500), Toyota Motor (TM) and Volkswagen in China, which is now the world's largest market for cars.

Ford trimmed its losses in Europe by 14% from a year earlier and 25% from the first quarter. It also reported improved sales despite the fact that industry-wide car sales in the region fell to a multi-decade low due to the recession.

The improvement in Europe led the company to trim its full-year regional loss estimate by $200 million, to $1.8 billion. To top of page

Join the Conversation
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.