Ford reported this week that its net income doubled for the first quarter compared with a year ago, thanks to an all-time profit record in North America.
Strong sales for the high-demanded SUV and truck models in the United States pushed Ford’s quarterly earnings to a best ever result. Automaker’s sales of 645,626 vehicles from January to March were up 9 percent, with SUVs accounting for 188,100 units, while delivers for its F-Series totaled 186,121 trucks. Therefore, based on these solid sales figures for the high-margin vehicles and on lower production costs, the company’s globally net income for the period nearly doubled from 1.299 billion dollars in 2015 to 2.452 billion dollars this year.
Furthermore, besides record overall operating margins in North America, Ford also reported its fourth consecutive profitable quarter in Europe and the best one since 2008. Ford does not expect the second half of the year to generate as much profit as the first half, mainly because of downtime for production plants in Europe and North America for normal summer and end-of-year shutdowns. However, the automaker is keeping its full-year targets for pretax profit that is expected to meet or exceed last year’s record 10.8 billion dollars.
By comparison, Ford managed to beat General Motors in both revenue and profit in the quarter. The biggest automaker in the US said last week its first-quarter net income rose to 2 billion dollars, while its 37.3 billion dollars in revenue was slightly under Ford’s 37.7 billion dollars one.