Ford Motor Company (F)’s Success Story Overseas Takes Hold in Q2

The reason for the jump was that wholesale volume increased 27%, boosting revenue in the region up 35% — and that’s not even including Ford’s joint-venture revenue. In the most important part of the region, China, sales of the new Focus, Kuga, and EcoSport helped Ford increase its market share by 1.5 percentage points to 4.3%. That’s well on the way to Ford’s goal of 6% market share, doubling what it once was, by 2015.

With Ford’s strong first-half performance and increasing market share, the company now predicts that it will be profitable for the full year. “We are beginning to see the benefits of our aggressive investment strategy in Asia/Pacific/Africa, with an expanding portfolio of global One Ford products tailored for the region with manufacturing hubs in China, India, and ASEAN,” the Association of Southeast Asian Nations, said Bob Shanks, Ford CFO, in a press release.

Bottom line
The biggest takeaway you get from Ford Motor Company (NYSE:F)’s Q2 performance is that it wants its reliance on the North American region to be balanced out as soon as possible. Right now, North America accounts for almost all of Ford’s earnings, but if things continue to progress as they are, international operations will be substantially more profitable in a couple of years — which will boost Ford’s bottom line and reduce reliance on any one economy or region for success. It also shows how much growth potential Ford still has overseas with its market share in the low single digits in many regions.

I expect success overseas to continue, and for Ford’s share price to continue climbing as that success unfolds in the years ahead.

The article Ford’s Success Story Overseas Takes Hold in Q2 originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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