Ford Q1 net income up 15% year over year on strong N American sales

24 April 2013 15:40  [Source: ICIS news]

HOUSTON (ICIS) -- Ford reported Q1 net income on Wednesday of $1.61bn (€1.24bn), a 15% increase year over year from Q1 2012's net income of $1.40bn.

Revenue rose more than 10% to $35.8bn in the first quarter of 2013, compared with $32.4bn a year ago.

Ford's earnings were driven almost exclusively by strength in North America, where Ford earned $2.44bn in pretax profit in the first three months of the year.

Ford reiterated its view that the US auto market will be at about 15.5m units in 2013, up from 14.8m units in 2012. Ford’s also said it expects its strong North American performance to continue, with pre-tax profit expected to be higher than 2012 and operating margins of about 10%.

Europe, where auto sales are down about 10% for the second year in a row, continued to be a struggle for the Dearborn, Michigan, auto maker. Ford reported a loss in Europe of $462m, up from $149m a year ago.

Ford expects to lose about $2bn in Europe this year, compared with a loss last year of about $1.75bn, largely due to plans to close three European factories by 2014.

In the Asia-Pacific region, Ford's full-year outlook remains unchanged at about breakeven. Ford said it expects to deliver strong growth in volume, share and revenue during 2013, but costs will continue to largely offset these positive effects as the company continues to invest in an expanded product lineup, new plants in China and India, and personnel to implement the company’s growth plan.

The American Chemistry Council (ACC) estimates that each automobile contains an average of $3,297 worth of chemicals, such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.

($1 = €0.77)

By: Mark Yost
+1 713 525 2653

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