At the same time of Detroit's first bankruptcy hearing Wednesday, Ford Motor Co. executives were asked about the city's health in a conference call with analysts, investors and the media for its second quarter results.
DETROIT, MI - At the same time of Detroit's first bankruptcy hearing Wednesday, Ford Motor Co. executives were asked about the city's health in a conference call with analysts, investors and the media for its second quarter results.
The company, with its obvious ties to the Motor City, did not seek government aid through bankruptcy following the global financial crisis in 2008 but did go through a major restructuring after reporting a $14.6 billion loss that year.
Less than five years later, the company is posting record pre-tax profits in North American and the Asia-Pacific region, and on Wednesday executives told investors that it has revised upward its financial outlook for 2013.
Ford Chief Financial Officer, Bob Shanks, noted the turnaround when he was asked about Detroit's bankruptcy.
"We're confident that the government leaders of Detroit and the state will move it forward," he said. "It can be healthy for Ford, healthy for suppliers, healthy for the state."
Shanks also noted, "It’s not having any direct impact on Ford,” and added that "it’s going to be good.”
Ford Motor Co.’s net profit rose 18.6 percent to $1.2 billion in the second quarter, as pre-tax earnings in the North America and Asia-Pacific markets were at all-time highs for the company. Total revenues grew to $38.1 billion, compared to $33.3 billion in the second quarter of 2012.
The strong growth in North America, where it was profitable for a 16th consecutive quarter, offset losses in Europe.
In Europe, where it reported a pre-tax loss of $348 million in the quarter, the company said it plans to return to profitability by mid-decade. Its pre-tax loss in the same period of 2012 was $404 million.
Ford continues to restructure in Europe, where it is closing three production facilities as it strives for a "more efficient manufacturing footprint."
But in every market throughout the world, Ford was able to gain at least some market share, company President and CEO Alan Mullally said Wednesday.
“We achieved outstanding results in the second quarter and we continue to expect strong growth for the rest of the year,” Mullaly said.
Overall, sales of Ford nameplates grew 15.3 percent to 670,531 units during the quarter. The F-Series lineup led sales, with 26.3 percent growth to 198,643 units. It was followed by rises for the Escape (up 22.0 percent) and the Explorer (up 13.1 percent).