Ford’s net profit increased by 18% in the second quarter of the is year to $1.23 billion, exceeding analysts’ expectations. The U.S. carmaker improved estimates of earnings before taxes for the entire year. Earnings per share excluding some items was at 45 cents, above the 37 cents expected by analysts consulted by Bloomberg.
The growing demand in the Chinese market for the Ford Focus and the Ford Fusion in the U.S., shows that plans of Ford’s CEO Alan Mulally to renew the Ford lineup work well.
Ford expects that after the good results of the second quarter, profit before taxes this year to be equal or exceed the eight billion dollars reached last year. Previously, the car manufacturer estimated a profit before tax in line with the previous year.
Ford also improved expectations for Europe, where the group this year expects a loss of $1.8 billion, compared to $2 billion as previously forecast. The outlook for automotive operating margin and cash flow this year is higher.
American group revenues increased from $33.3 billion in the second quarter of last year to $38.1 billion.
Ford’s overall results are affected by a tough market in Europe, where economic difficulties have pushed car sales to the minimum figures of the past two decades, writes Bloomberg. Ford’s operating loss in Europe in the second quarter fell to $348 million, from $404 million a year ago. Ford maintains its plan to reach profit in Europe by 2015, said, earlier this month, the head of the group’s operations in Europe, Stephen Odell.
The group gained market share on the U.S. market, with the hope to reach 16 million cars and light truck sales in 2013.
“Did we probably leave a few sales on the table? Yeah, probably. We’re rectifying that as we go into the second half of the year,” said Mark Fields, chief operating officer, on a conference call. “.”
Ford’s (NYSE:F) stock, which gained 34 percent this year, opened the trading session today at $17.23, giving the company a market capitalization of $67 billion.
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