Ford Drives Ahead With Impressive Performance In Its Key Markets

This article was originally published by GuruFocus 

By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf

March 1, 2014

The second largest auto maker of the U.S. and fifth biggest automaker of the world, Ford Motor Co. (F) is on a roll. Ford is expecting significant growth in China. The company has been going strong in Europe where it has recently reported solid growth of 8.8% for the month of January, the best figures among the Detroit automakers. Meanwhile, the company has been witnessing higher production volume in North America, where its profits were higher than market’s expectations.

Earnings Beat

In its previous results for the fourth quarter, Ford reported better than expected earnings and revenues, largely due to the improved performance in North America and Asia. For 2014, the company has reaffirmed its guidance. However, the intensely competitive environment and downward pressure on prices can have an adverse impact on its profits.

In its quarterly results, Ford’s net income jumped 90% from last year to $3.04 billion, or $0.74 per share. This massive increase, however, was largely due to a tax benefit in Europe as its pretax profit dropped by 24% to $1.28 billion. Despite the drop, the adjusted earnings came in at $0.31 per share, this was better than analyst’s estimate of $0.28 per share.

Ford’s quarterly revenues rose 3.6% from the same quarter last year to $37.6 billion. The revenues were also higher than market’s expectation of $35.17 billion. This growth in revenue was mainly due to the increase .... read full article at GuruFocus

Ford Could Nearly Double Its Market Share in China by 2015

By Sarfaraz A. Khan and Gohar Yousuf

The U.S. automaker Ford (F) has recently released its U.S. sales numbers for the month of November. Overall sales in the region grew by 7% from prior year to 190,449 units while retail sales rose by 9% to 147,021, which is the highest level for retail sales since November, 2004. Passenger cars sales grew by 6%, while its best-selling pickup in the U.S., the Ford F-Series, delivered another strong performance with a 16% year-over-year increase in sales. In its most recent quarterly results, Ford reported a 12% increase in revenues to $36 billion due to higher sales in the U. S. and Asia Pacific, which offset the decline coming from Europe. In China, the world’s biggest auto market, the company is aiming to increase its market share from 3.2% in 2012 to 6% by 2015. The company will face increasing competition from General Motors (GM) as well as Japanese rivals, but Ford can deliver on its promise due to its massive expansion plans.

Strong Performance In China

Ford was a late entrant to the Chinese market, which is dominated by General Motors as the biggest foreign player in China. By the end of third quarter, Ford enjoyed a ... read full article at GuruFocus