Ford Posts Record Results

By Christina Rogers 

Ford Motor Co. delivered record results in the first-quarter amid strong truck sales, with net income more than doubling in the period and an operating margin in the core North American unit rivaling those returned by high-end luxury brands.

Ford reported net income of $2.5 billion, or 61 cents a share, up from $1.2 billion, or 29 cents a share in the first quarter of 2015, a period negatively affected by short supplies of its biggest money maker, the F-150 truck. On an operating basis, the company earned 68 cents per share.

The results beat analyst expectations of 48 cents a share. The company's closely watched North American operating margin equaled 12.9%, an all-time record during the three-month span, and far higher than the 8.7% at rival General Motors Co.

Ford's performance comes amid continued sales growth in the U.S. light-vehicle market. Low gasoline prices have spurred demand for the most profitable vehicles on dealer lots -- trucks and SUVs, leading to robust profits for Detroit's Big Three and other major players in the American market.

Ford's revenue increased 11% to $37.7 billion, up from $33.9 billion in the same period a year ago.

Robust demand for Ford's pricier trucks, including the best-selling F-150 pickup, in the U.S. continued to drive its operating profits in North America, which nearly doubled to $3.1 billion in the first quarter versus a year ago.

Ford posted its best quarter in Europe since 2008, swinging to a $434 million pre-tax profit from a $42 million loss in the same period in 2015, a further indication that the company's restructuring efforts in the long-troubled region are producing results.

Profit in Asia Pacific doubled to $220 million vs. $105 million a year ago amid growth in China, while the loss in South America -- which is suffering from wider economic malaise -- widened to $256 million.

Write to Christina Rogers at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 07:36 ET (11:36 GMT)

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