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Ford Reports Net Income of $1.2 Billion for Second Quarter
DEARBORN, Mich. -- Ford Motor Co. today reported net income of 57 cents per share, or $1.2 billion, for the second quarter. This compares with net income of 22 cents per share, or $417 million, in the second quarter of 2003.Ford's second-quarter earnings from continuing operations, excluding special items, were 61 cents per share, or $1.3 billion. This result exceeds the First Call consensus estimate of 50 cents per share. Total sales and revenue in the second quarter rose to $42.8 billion from $40.6 billion in the year-ago period."I am pleased that we continue to make solid progress in this extremely competitive environment," says Bill Ford, chairman and chief executive officer. "Although the remainder of the year includes many challenges, we'll generate lots of excitement with the introduction of new products such as the Ford Five Hundred, Freestyle and Escape Hybrid, the Land Rover Discovery/LR3 and the new Ford Focus in Europe."On a pre-tax basis, Ford's worldwide automotive sector reported a loss of $57 million during the second quarter. Excluding special items of $140 million, worldwide automotive profit in the second quarter was $83 million, an $80 million improvement over the same period a year ago. Worldwide automotive sales for the second quarter rose to $36.7 billion from $34.1 billion in the same period last year. Worldwide vehicle-unit sales in the quarter were 1,748,000, up from 1,718,000 a year ago.Automotive cash, marketable securities, loaned securities and short-term Voluntary Employee Beneficiary Association assets on June 30 were $26.8 billion, up from $26.5 billion at the end of the first quarter.For the second quarter, the Americas reported a pre-tax profit of $477 million, excluding special items, up $101 million from the same period a year ago. Ford's North America automotive pre-tax profit for the second quarter was $455 million, excluding special items, up $10 million from a year ago. The increase primarily reflected improved vehicle mix and favorable net pricing, partially offset by lower volumes and the non-recurrence of favorable 2003 warranty reserve adjustments. Sales were $20.5 billion, down from $20.7 billion in the same period a year ago.Ford's South America operations reported a second-quarter pre-tax profit of $22 million, a $91 million improvement from the 2003 second quarter. The improvement primarily reflected favorable pricing and higher vehicle volumes, partially offset by higher material costs. Sales improved to $665 million from $435 million in the same period a year ago.Ford Europe's second-quarter pre-tax profit was $211 million, excluding special items, compared with a pre-tax loss of $525 million during the 2003 period. The improvement of more than $700 million primarily reflected higher volumes and lower costs. Ford Europe's sales in the second quarter were $6.7 billion, compared with $5.2 billion during the second quarter of 2003.The company's Premier Automotive Group reported a pre-tax loss of $362 million for the second quarter, compared with a pre-tax profit of $166 million for the second quarter of 2003. The decline in results primarily reflected unfavorable exchange rates, higher costs including the effects of product changeovers, unfavorable mix and lower net pricing. Second-quarter sales for the unit were $6.9 billion, compared with $6.4 billion a year ago.Ford Motor Credit Co. reported record net income of $897 million in the second quarter, up $496 million from $401 million a year earlier. On a pre-tax basis from continuing operations, Ford Credit earned $1.4 billion in the second quarter, compared with $661 million in the previous year. The increase in earnings primarily reflected continued improved credit loss performance, higher used vehicle prices and the favorable impact of the low interest rate environment.Hertz reported a pre-tax profit of $144 million in the second quarter compared with a $57 million profit during the same period a year ago. The improvement primarily reflected higher rental car volume in leisure and commercial segments, higher profit from the disposal of used vehicles and equipment sales, and favorable cost performance. The improvements were partially offset by lower pricing in highly competitive car rental markets worldwide.For the third quarter, Ford expects to earn in a range of break-even to 5 cents per share from continuing operations, excluding special items.Ford is increasing its full-year earnings guidance by 15 cents per share to a range of $1.80 to $1.90 per share from continuing operations, excluding special items. Ford Motor Co. manufactures and distributes automobiles in 200 markets across six continents. and employs more than 327,000.Visit Ford Motor at www.ford.com"