EU Says Goodbye to Recession and Hello to New Fords
In the first quarter, and for the past several years, Ford’s (NYSE:F) operations in recession-plagued Europe have left their grim prints on the company’s results. Yet, Ford has rolled strong quarterly earnings several times this year, indicating that the automaker’s turnaround was on strong footing despite ongoing losses in the region.
The second quarter’s results did show that losses in Europe shrunk from the $404 million recorded in the year-ago quarter to $348 million, contributing to the 19 percent increase in net income the company generated. Now, the European car market is showing the first signs of improvement even though demand across the region fell to its lowest level since 1996 just two months ago.
In July, Ford’s European sales grew more than twice as fast as the overall industry, announced the automaker in a Thursday press release. Sales jumped 8.7 percent to 90,000 vehicles in the 19 traditional European markets while overall industry sales grew only 4.3 percent. This expansion — driven by “strong demand for new models such as the Fiesta, Kuga, B-MAX, and Transit Custom” — pushed Ford’s market share in Europe to 8 percent from the 7.6 percent share it held in July 2012.