North American demand for Ford cars and trucks remained strong in the second quarter of this year, which more than made up for negative quarters in Europe, Africa, Asia, and South America. All told, Ford Motor Company posted a $1.8-billion second quarter pre-tax profit, about $1 billion lower than the same time last year. Total year-to-date pre-tax profit is $4.122 billion, which is about $1.6 billion lower than the first half of 2011.
Ford North America: $2.010 billion, up $102 million
It looks like Ford Motor Company's success was on the back of vehicles like the F-150 and Escape: Ford North America led the company with a $2.010-billion profit last quarter, a $102-million boost over the second quarter of 2011. All told, Ford North America has made $4.143 billion in pre-tax profits so far this year, up $391 million from the same time last year.
You can thank a few different factors for this success: Ford claims that the net pricing for its cars is higher than before, and sales of Ford products continue to be strong in the U.S., a trend that Ford says will continue forward for the rest of the year through launches of the Escape CUV (which is already seeing some success) and the upcoming Fusion mid-size sedan.
Ford South America: $5 million, down $262 million
Profits in South America didn't fare as well as they did in North America: the second-quarter pre-tax profit was down to $5 million in the second quarter, down from Q2 2011's $267-million windfall. For this ford blames lower sales volume and higher costs, but predicts that new cars like the Ranger, EcoSport, and Fusion will boost volumes and profits so the division will end 2012 in the black.
Ford Europe: ($404 million), down $580 million
Ford Europe easily took the crown of Ford's most problematic division in the second quarter with a $404 million pre-tax loss. So far this year Ford Europe has lost $553 million, some $1.022 billion lower than the first half of last year. For that you can blame the European changing economic conditions in Europe, as well as increased incentive spending by dealers in hopes of boosting sales volumes. All told Ford expects to lose a cool billion in Europe this year--losses that will have to be made up by Ford's North America division.
Ford Africa/Asia: ($66 million), down $67 million
Ford says that its Asian and African markets are looking up, but it posted a $66-million loss as the company invests in increased capacity and new models for the region.
Ford Credit: $438 million, down $166 million
Fewer lease terminations and lower interest rates drove profits somewhat down at Ford's credit division, but it did still manage to make $438 million. The division is down $427 million so far this year, but finished the first half of 2012 with $890 million in pre-tax profits.