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Ford profit beats Street
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April 15, 1999: 7:52 a.m. ET
No. 2 automaker cites strong car, light truck sales and cost-cutting
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NEW YORK (CNNfn) - Ford Motor Co. Thursday said profits rose 20 percent in the first quarter, beating forecasts on Wall Street, as strong sales in North America helped offset weakness in Europe and South America.
The nation's No. 2 automaker said its operating earnings rose to $1.8 billion, or $1.46 a diluted share, in the quarter, from $1.5 billion, or $1.22 a diluted share, a year earlier. Analysts had forecast profits equal to $1.39 a share for the latest quarter, according to First Call, which tracks Wall Street estimates.
Sales rose 3.6 percent to $37.9 billion from $36.6 billion.
Results for the latest quarter exclude a one-time gain of $165 million, or 14 cents a share, from ending a joint venture in Portugal, while year-ago results exclude gains of $16.1 billion from the spin-off of Associates First Capital, the financing firm that Ford split into a separate company last year.
The results came as General Motors (GM) said its earnings jumped 31 percent in the quarter, also beating estimates.
Strong sales in North America, where Ford sold 15.4 percent more cars and light trucks in the quarter, more than offset a decline in unit sales in other regions, Ford said. It also said it cut $100 million in costs from its automotive business.
Ford said its North American operations earned $1.6 billion in the quarter, up 57 percent from a year earlier, fueled by strong sales of sport-utility vehicles, minivans and other light trucks. Light truck sales rose 20 percent while car sales rose 10 percent in the United States, it said.
Ford broke even in Europe, after earning $230 million in the 1998 quarter, while its losses widened to $165 million, from $45 million, in South America.
Earnings in Ford's credit arm rose 8 percent to $300 million.
Ford stock fell 7/16 to 62-3/4 Wednesday.
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