Lower Taxes Boost Ford’s Profit 4%

Ford Motor Co.’s net income grew 4% to $2.0 billion in the second quarter of 2017, thanks to a lower tax rate.

Global wholesales of vehicles to dealers in April-June were flat at 1.65 million units. But a richer mix, especially in North America, bumped revenue up 1% to $39.9 billion.

Ford’s adjusted pretax income fell 16% to $2.5 billion. The company blames higher steel prices, unfavorable exchange rates and results that compare to year-earlier results that were aided by a one-time asset sale.

In North America, Ford’s wholesale volume in the second quarter slipped 1% to 807,000 vehicles. But revenue rose 3% to $24.5 billion. Pretax profit fell to $2.2 billion from $2.7 billion in the same period last year.

In Europe, wholesales grew 12% to 93,000 units, and revenue jumped 18% to $1.5 billion. But pretax profits shrank to $88 million from $467 million a year ago because of product launch costs and the unfavorable exchange rates linked to the U.K.’s decision to exit the EU.

In Asia Pacific, Ford’s second-quarter volume grew 7% to 352,000 units. Pretax results climbed to $143 million from an $8 million loss last year.

Sales also improved in South America, rising 12% to 93,000 units. Revenue climbed to $1.5 billion from $1.3 billion. The company’s pretax loss narrowed to $185 million from $265 million in the second quarter of 2016.

Ford Motor Credit Co. posted a pretax profit of $619 million, its best quarterly result since 2011.