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.