Ford Posts Record Pretax Profits in North America

Ford Motor Co.'s net income jumped 44% to $1.9 billion in the second quarter of 2015. Pretax profit climbed 10% to $2.9 billion. Revenue, hit by $2 billion in unfavorable exchange rates, was virtually flat at $37.3 billion.

Wholesale car and truck volume in April-June rose 2% to 1.70 million vehicles on gains in North America and Europe. Pretax earnings at Ford Motor Credit climbed 17% to $506 million, buoyed a richer sales mix and an upswing in vehicle leasing in North America.

CEO Mark Fields predicts a stronger second half and a full-year corporate pretax profit between $8.5 billion and $9.5 billion. Analysts note that second-quarter results were achieved with no help from the company's biggest moneymaker, the F-150 pickup truck, whose inventories won't be back to normal until October.

Ford's automotive revenue in April-June was nearly flat at $35.1 billion. The segment's pretax profit advanced nearly 10% to $2.4 billion, the best result in 15 years.

In North America the company's auto-related pretax profit rose 6% to an any-quarter record $2.6 billion. Revenue grew 10% to $23.3 billion on wholesales of 816,000 vehicles, up 7%.

In Europe, unit wholesales in the second quarter advanced 3% to 389,000 units. But pretax results swung to a $14 million loss as the strong dollar reduced revenue 14% to $7 billion.

Ford's second-quarter unit wholesales in Asia Pacific declined 4% to 349,000 units. Revenue, which excludes the company's joint ventures in China, dropped 15% to $2.4 billion. Pretax profit jumped 21% to a record $192 million, thanks to lower costs and favorable exchange rates.

Revenue in South America plunged 29% to $2.9 billion in April-June as wholesale deliveries shrank 14% to 98,000 units. But a more favorable price mix lowered Ford's pretax to $185 million from $295 million a year earlier.