Tomahawk, WI 7/26/2013 (Basicsmedia) – Ford Motor Co. (NYSE:F) reported on July 24, 2013 that its revenues climbed 8.4% in 2Q2013 to $36 billion. The adjusted earnings per share jumped 50% to $0.45 compared to $0.30 in the year ago quarter. Analysts had forecast revenues of $35.24 billion and earnings of $0.37 a share. Bernard Silverstone, Chairman and CEO of Ford Credit mentioned, “We are pleased with our second quarter results and our continuing receivables growth. Our focused support of Ford, our customers and dealers continues to benefit the enterprise.”

The strong performance has allowed Ford to raise its outlook for cash flow and operating margin for FY2013 and cut the Europe loss forecast. Ford anticipates the operating margin for FY2013 at 5.3% and pretax profits to equal or exceed $8 billion, which it achieved in FY2012. The company has earned pretax profit of $4.7 billion in the first six months so far. The company expects FY2013 cash flow to be more than $3.4 billion, which it has achieved in FY2012. It also reduced the loss forecast for its Europe operations in FY2013 to around $1.8 billion. Earlier, Ford had anticipated loss of $2.0 billion in Europe.

Ford is having its headquarters in Dearborn, Michigan in the U.S. and it is the second largest automobile manufacturer in the U.S. The increase in revenues was mainly due to the good demand for its Fusion cars as well as the F-Series pickup vehicles. Ford delivered 198,643 F-Series vehicles in 2Q2013, an increase of 56%. The company is expanding its manufacturing facility to build more numbers in these two models in 3Q2013. The Fusion cars have become top sellers in the U.S. market. The company anticipates sales of 16 million in July 2013. Analysts believe that the company will be able to do even better next year when it will be launching the new F-150.

The stock of Ford gained 2.5% on July 24, 2013, closing at $17.37. The shares have climbed 34% in 2013. The stock had closed at $8.97 on July 25, 2012 and it has been steadily increasing in the last one year. Ford had lost $30.1 billion between 2006 and 2008 but has earned $35.2 billion between 2009 and 2012. In five quarters of the last six quarters, the operating margin of Ford has been above 10% in North America, a really impressive figure.

Three years ago, Ford had borrowed $23.4 million to avoid bankruptcy. After the turnaround in North America, Ford is restructuring its Europe operations. The company is also expecting better profits from its Asia operations. The deliveries of Focus rose 69% in China in the first six months of FY2013. The earnings of Ford from its Asia Pacific and Africa operations were $177 million in 2Q2013, compared to a loss of $66 million a year ago. The company is planning to introduce 15 new models in China by 2015. Ford is also getting good prices for its vehicles in South America, according to Bob Shanks, Chief Financial Officer of Ford.

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