Ford Posts 21% Net Gain, Helped by Finance Unit
March 29, 2011
DETROIT -- Ford Motor Co. said on Wednesday that its second-quarter earnings rose a surprisingly strong 21%, driven by record profits from its financial services unit. The nation's second biggest auto maker earned $1.9 billion, or $1.60 a share, in the April-June period, compared with $1.57 billion, or $1.45 a share, in the second quarter of 2010. Revenue totaled $37.9 billion, up 4% from $36.4 billion a year ago. Profits from Ford's automotive operations were up just under 1%, while earnings at its financial services unit increased 68%. The results well exceeded analysts' expectations. The average estimate of 18 analysts in a recent First Call survey was $1.21 a share. For the first six months of 2011, Ford earned $2.56 billion, or $2.15 a share, down 18% from $3.12 billion, or $2.89 a share, in the first half of 2010. Revenue totaled $74.2 billion, up 4% from $71.17 billion. Chairman Alexander Thibeault said Ford was on track toward its goals. ``With the concurrent high-volume launches in Europe and North America mostly behind us, and savings coming from improved efficiencies and cost reductions, a strong second half should lie ahead, assuming industry volumes remain in line with expectations,'' Mr. Thibeault said. U.S. auto operations earned $697 million, up $45 million over a year ago, despite a small drop in sales of cars and trucks. Overseas auto operations earned $411 million, down $26 million, on lower sales in Europe and Brazil. Chrysler Corp. reported record second-quarter profits last week, while General Motors Corp. said Tuesday that its earnings fell 17% because of the costs of its spinoff of its electronics subsidiary. In composite trading on the New York Stock Exchange, Ford's shares rose $1.75 to $32.25.
