Ford Motor Co beat expectations on Wall Street with its operating earnings during the second quarter as profit in North America as well as Europe was better than had been expected, while South America and Asia Pacific saw weaker results.
Bob Shanks the CFO at Ford said the pre-tax profit at the company was helped by lower costs pushing it in North America to an all time high of $2.44 billion. Analysts expected Ford’s profit before taxes to be $2.04 billion.
Costs during the second six months of this year should rise as Ford introduces additional products including the most important vehicle it has, the F-150 pickup.
The operating margin at the company in North America moved from 10.6% one year ago to 11.6%. Ford affirmed its guidance for the full year for profit before taxes of $7 billion to $8 billion.
The outlook for the company in South America was moved downward because of more losses than was previously expected. Ford now anticipates it will take a loss or break even during the second six months of 2014.
For the recently ended quarter, South America had a loss of more than $295 million. Analysts were expecting the company to lose $182 million during that quarter.
The region of Asia-Pacific saw an operating profit that exceeded $159 million, which was lower than the estimated $260 million. CFO Shanks said the majority of the profit in the Asia-Pacific region was out of China.
The market share Ford has in China, the world largest car market, increased during the quarter to 4.6%.
Ford earned its first profit in Europe in three years, which shows the plan of transformation was working said Shanks of the restructuring efforts Ford made that included closing a Belgium plant.
Items that were just one-time during the recently ended quarter included a charge of $329 million due cash flow that were poorer than expected in Russia, where the carmaker is involved in a joint venture with Sollers a Russian carmaker.
Excluding the one-time items, the U.S. carmaker earned $2.6 billion equal to 40 cents a share topping the forecast by analysts of 36 cents a share.