Ford Raises Full Year Profit Forecast

Bloomberg News

After exceed­ing ana­lysts’ esti­mates for the 2013 sec­ond quar­ter, Ford Motor Co. has raised its out­look for the full-year pre­tax prof­it based on the new num­bers.

Get the details on Ford’s opti­mism, includ­ing the Euro­pean sec­tor.

Ford Motor Co., the sec­ond-largest U.S. automak­er, raised its full-year pre­tax prof­it fore­cast after sec­ond-quar­ter earn­ings climbed more than esti­mates as the Focus com­pact and Fusion sedan led a sta­ble of com­pet­i­tive cars.

Ford also raised its out­look for auto­mo­tive oper­at­ing prof­it mar­gin and auto­mo­tive cash flow for the year. The com­pa­ny report­ed net income of $1.23 bil­lion, or 30 cents a share, in a state­ment. Exclud­ing some items, the per-share prof­it was 45 cents, exceed­ing the 37-cent aver­age esti­mate of 17 ana­lysts sur­veyed by Bloomberg. The result com­pared with net income of $1.04 bil­lion, or 26 cents, a year ear­li­er.

Surg­ing demand for Focus in Chi­na and Fusion in the U.S. shows Chief Exec­u­tive Offi­cer Alan Mulally’s efforts to improve Ford’s line­up are pay­ing off. Attrac­tive cars from Ford, Gen­er­al Motors Co. and Chrysler Group LLC and their dom­i­nance in the resur­gent full-size pick­ups seg­ment drove all three to gain U.S. mar­ket share in the first half for the first time since 1993.

Glob­al results for Ford are being tem­pered by strug­gles in Europe, where a wors­en­ing eco­nom­ic slump is drag­ging indus­try sales to the low­est in two decades. The oper­at­ing loss for Ford’s Europe oper­a­tions nar­rowed to $348 mil­lion dur­ing the sec­ond quar­ter, from $404 mil­lion a year ear­li­er.

The com­pa­ny still plans to break even in Europe by 2015, Stephen Odell, the head of the company’s Europe oper­a­tions, told reporters ear­li­er this month. The indus­try in Europe is “start­ing to show signs of sta­bil­i­ty,” he said.

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