Ford’s 2016 1Q A Blockbuster as It Earns $2.5 Billion USD

Discussion in 'Ford' started by xcel, Apr 28, 2016.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] Full F-Series supply, higher margins, higher revenues and cost controls are paying off big time.

    [​IMG]Wayne Gerdes – CleanMPG – April 28, 2016

    North America provides incredible earnings power, Europe profits improving quickly and China profits up strong. Stock price does not react.

    This morning Ford stated it made a first quarter profit of $2.5 billion including an all-time record $3.8 billion in pre-tax profit. Net more than doubled from $1.2 billion the iconic auto maker earned last year.

    Ford’s first quarter global sales reached 1.72 million vehicles, up 10 percent with Global market share up two-tenths to 7.1 percent. Revenue of $35.2 billion was up $3.4 billion, Global operating margin was a record 9.8 percent.

    Ford reported earnings of $0.68/share, beating street estimates by $0.20.

    North America

    North America is always the highlight where sales of 814,000 vehicles was up 20 percent over the 678,000 sold during the same period of 2015. Revenue of $23.9 billion was up 19 percent over the $20.0 billion during the same period of 2015, and operating margin reached 12.9 percent, up an incredible 5.1 percentage points. ß This was the key to the excellent profitability.

    Europe

    Ford sold 399,000 vehicles during the first quarter, up 6.1 percent over the 376,000 sold during the same period of 2015. Revenue was flat at $6.9 billion, market share was up 0.3 points to 8.0 percent and operating margins reached 6.3 percent. Pre-tax earnings of $434 million was up $476 million over the $42 million earned during the same period of 2015. It was the best European result since 2008.

    Asia

    Ford sold 398,000 vehicles in the region through the first quarter of 2016, up 8.7 percent over the 366,000 sold through the same period of 2015. Revenue of $2.7 billion was up 17.4 percent over the $2.3 billion achieved in the same period and market share of 3.6 percent was up 0.3 percent over the share tallied during the same period of 2015.

    The highlight was that profits more than doubled to $220 million from the $105 million earned in the first quarter of 2015. China by itself was a key to that result where pretax profit reached $443 million USD, up 23 percent with an incredible margin of 16.4 percent!

    South America experienced pre-tax losses of $256 million, down $67 million from the $189 million lost in the first quarter of 2015. Brazil’s economic depression accounted for most of this loss.

    Ford 10-Year Stock Price Action

    [​IMG]

    During the record first quarter results announcement, Ford President and CEO Mark Fields said he expects another good performance through the rest of 2016.
    Compared to its American rivals, Ford’s first quarter of $2.3 billion in earnings was higher than GMs $2.0 billion and FCAs $478 million.

    All of the above results are posted in $USD.
     
    BillLin likes this.

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