April 28, 2012- Ford Motor Co announced its first quarter earnings on Friday. Net income for the company fell by 45% to just over $1.4 billion during the quarter. European sales plummeted and weaker results in South America and Asia were reasons for the earning slump.
However, sales in North America were excellent. The company had a profit of $2.1 billion, making it the best performance in the first quarter since Ford started to report its regions separately in 2000. Analysts said that no one would have been able to predict the success Ford has seen since its big turnaround took hold about three years ago.
Ford has made huge strides since 2004. The first quarter of that year Ford sold 1 million vehicles and made $1.8 billion in North America at a time when the market was very strong. In its latest quarter, in a weaker market, the company made a higher profit on sales of 350,000 fewer vehicles.
It is earning more because of better products and because its upgrades on cars are being chosen by new car buyers. The average price buyers paid for a new car in the latest quarter was $1,200 higher than the same quarter last year, due to upgrades being purchased by customers.
In Europe however, things are not so upbeat. Sales in Europe fell by over 60,000 vehicles. In Europe alone, Ford lost $149 million for the quarter.