Ford Boosts Earnings 6%

Ford Motor Co.'s net income in the second quarter advanced 6% to $1.3 billion. Pretax profit rose 2% to $2.6 billion.

Wholesale volume and revenue slipped 1% to 1.66 million vehicles and $37.4 billion, respectively.

Ford's net for the period includes a special $481 million impairment charge for its Sollers venture in Russia. The company notes that a weak ruble, plunging demand and geopolitical issues are clouding the business outlook there.

In North America, Ford sales dropped 5% to 760,000 units, and the company's market share fell 1.2 points to 15.3%. Revenue declined by $600 million to $2.1 billion, but the operating margin for the region gained one point to 11.6%. Ford reiterates that it expects to report lower full-year pretax profit in North America this year, largely because of a lengthy shutdown in production of its best-selling F-Series pickup truck to convert to the aluminum-intensive 2016 model.

In Europe, sales declines in Russia and Turkey offset gains elsewhere, leaving volume in April-June unchanged at 377,000 units. But revenue climbed 10% to $8 billion, and pretax results swung from a $306 million loss to a $14 million profit.

In Asia Pacific, a 21% jump in wholesale volume to 362,000 units boosted revenue 7% to a second-quarter record of $2.9 billion. Pretax profits zoomed 22% to $159 million.

In South America, the company swung to a $295 million pretax loss in the second quarter. Sales dropped 22% to 114,000 vehicles and revenue plunged 30% to $2.1 billion.

Ford's global production shrank by 12,000 units to 1.54 million. Declines of 4% in North America and 10% in South America offset gains of 2% in Europe and 4% in Asia Pacific.

The company affirms its 2014 guidance of a pretax profit between $7 billion and $8 billion.