April 26, 2011- With improved pricing and strong sales Ford Motor easily rode past forecasts by posting their best first quarter profit in 13 years. The automobile company earned $2.6 billion that amounted to $0.61 a share, 22% higher than a year ago. The earnings top forecasts by 11 cents a share making them better than even the most bullish of estimates.
The company sold part of their financial services back in 1998 and that was the last time they earned this much in the first quarter. The company’s continued turnaround is evident in the performance of this last quarter. They have posted seven straight profitable quarters following years of losses.
Ford’s shares climbed over 4% to reach $16.20. The stock has been sluggish as of late because of lower than expected fourth quarter earnings and the constant worry in the market about high fuel prices.
Revenue increased to $33 billion which was an 18% increase that topped even the most optimistic estimates easily. Sales worldwide of Ford vehicles was up 12% for the same period. Fords sales in March for the U.S. topped their rival General Motors for the first time in over 13 years.
There still has not been an earnings target released for the rest of the year but they do expect to continue posting improved numbers. But because of many factors including seasonal factors, higher commodity prices and costs related to long term plans, they feel it will be difficult to post numbers as good as those of the first quarter.