Ford Posts Record Q1 2016 Quarterly Profit on Strength of Trucks, SUVs
North America, Europe, Asia Pacific Drive Gains
They may not be particularly exciting to gearheads that get their thrills from going to NHRA events, off-road adventures, and getting bloody knuckles and greasy fingernails from wrenching on their rides, but automaker financial reports are an important barometer of a company’s health and have a bearing on the amount of money that can be spent on future product development. If Ford’s first-quarter 2016 financial results are any indication, Dearborn has a bright outlook ahead of it for the rest of the year. The company earned an all-time-record pretax profit of $3.8 billion, up $2.1 billion from Q1 of 2015, and a net income of $2.5 billion, up $1.3 billion.
Europe, which was once a drag on the company’s financial performance, was a bright spot in the Q1 results, posting a fourth-consecutive quarterly profit and the region’s best quarter since 2008. As usual, North America was the biggest contributor to Ford’s profits, with a quarterly pretax profit of $3.1 billion and a record operating margin of 12.9 percent. Much of the North American growth was driven by full availability of the F-150 and strong sales of the Transit and its SUV models.
Economic weakness in Brazil and a currency devaluation in Argentina hurt the company’s performance in South America, with a pretax loss of $256 million and a 30.4 percent negative operating margin. However, performance in the Asia Pacific region was positive, contributing revenues of $2.7 billion and pretax profits of $220 million.