Ford Motor Co., the second largest US automaker, announced its second-quarter profit jumped 44 percent, soaring ahead of analyst forecasts on the back of rising demand from consumers snatching pricier models in North America.
With motorists paying bigger money on Ford’s latest models, including the top of the line versions of the new aluminum bodied F-150 pickup truck, Ford said its net income was of $1.9 billion, or 47 cents a share, compared with $1.3 billion, or 32 cents during the same period last year. Analysts surveyed by Bloomberg had expected a profit of 37 cents a share. “This is a great quarter that demonstrates that there’s more to Ford and more to North America than the F-150,” commented in an interview with Bloomberg TV Bob Shanks, the automaker’s chief financial officer. “We’re excited about what’s ahead for us with the F-150.” The results show the company will not be under tremendous pressure for the rest of the year, after chief executive officer Mark Fields has promised the carmaker’s pretax profit would jump up to 51 percent for the year as the production of the top selling line – the F-150 – is being swung into full action.
Ford also recorded a record profit for the core North American region, which achieved an operating margin of 11.1 percent, even though sales of the pricy pickup have not been positive. That’s because the automaker said dealers will get full stocks of the F-150 only by the end of September, with the key pickup series making up no less than 90 percent of the automaker’s worldwide profit, according to Morgan Stanley.