Ford Motor (F 11.15, -0.12) has slid 1.1% in pre-market despite beating earnings expectations and issuing upbeat guidance.
The automaker reported above-consensus second quarter earnings of $0.51 per share on a 0.5% year-over-year decline in revenue to $36.93 billion, which was a bit below estimates.
Adjusted pre-tax profit declined by $500 million to $2.50 billion due in part to higher steel costs. Unfavorable exchange rates and last year's one-time gain on the sale of majority stake in OEConnection contributed to the year-over-year decline.
Wholesales declined by 43,000 to 1.65 million and automotive market share ticked down to 7.4% from 7.5% one year ago.
Looking at the segment breakdown, North American wholesale volume fell 1.0% to 807,000 while revenue increased by $700 million to $24.50 billion. Strength of series, vehicle mix, and higher net pricing contributed to the revenue growth. A market share improvement in truck and utilities was more than offset by lower fleet sales, resulting in a ten-basis point decline in market share to 14.4%. Pre-tax profit totaled $2.20 billion, down $500 million year-over-year.
South American wholesale volume rose 12.0% to 93,000 while revenue grew by $200 million to $1.50 billion. Higher volume and favorable pricing drove the increase in revenue. Market share improved by 50 basis points to 9.2% due to strong performance of Ford Ka. Pre-tax loss totaled $185 million, which was an $80 million improvement when compared to 2016.
European wholesale volume declined 12.8% to 375,000 while revenue decreased by $1.00 billion to $7.10 billion. Brexit effects and the launch of a new Fiesta contributed to disappointment. Market share declined by 20 basis points to 7.3%. Pre-tax profit totaled $88 million, down $379 million year-over-year.
Middle East & Africa wholesale volume declined 36.8% to 24,000 while revenue decreased by $400 million to $600 million. Market share declined by 120 basis points to 3.4%. Pre-tax loss totaled $53 million, representing at $12-million improvement year-over-year.
Asia-Pacific wholesale volume grew 7.0% to 352,000 while revenue increased by $600 million to $3.40 billion. A full line up of SUVs and continued growth of Lincoln in China fueled the increase. Market share improved by ten basis points to 3.7% while pre-tax profit totaled $143 million, up $151 million year-over-year.
Ford Credit had its best showing since 2011 as pre-tax profit increased by $219 million to $619 million.
Looking ahead, Ford expects that earnings for the full year will be between $1.65 per share and $1.85 per share, which is ahead of current market expectations.