Sales of pickup trucks, commercial vans and sport-utility vehicles helped Ford Motor Co. nearly double profits in the first quarter.
Ford said it earned $2.5 billion in the quarter compared to $1.3 billion in the same period a year earlier. Revenue jumped 11 percent to $37.7 billion.
“The first quarter was an absolutely terrific start to the year,” said Mark Fields, Ford’s chief executive.
Thanks to sales of Ford’s F-150 trucks, its North American operating profit nearly doubled to a record $3.1 billion. Ford sold nearly 190,000 pickups in the U.S. during the first quarter, making it both the best-selling truck and top vehicle nationally.
Low gas prices and interest rates are making trucks and SUVs hot sellers in the U.S. this year.
Ford also credited sales of commercial vehicles, including the Transit van, for its record North American profits.
This added up to a strong operating profit margin of 12.9 percent in North America, up from 7.8 percent in the prior year.
“Strong truck sales in North America, consistent with what we’ve seen at GM and FCA, continue to be a boon for Ford,” said Stephen Brown, an analyst at Fitch Ratings.
But the strong North American results might ease, as the U.S. hits a peak in the latest auto sales cycle, he said.
“We still have concerns about longer-term demand levels in North America, which are moderating,” Brown said. “Ford appears well-situated, especially as they gain traction on a number of initiatives outside North America.”
Ford’s results were also bolstered by its best quarter in Europe since 2008, where the automaker posted an operating profit of $434 million compared to a loss of $42 million in the same period a year earlier.
Commercial vehicles also played an important role in Ford’s European results, the automaker said, noting strong sales of the Transit van line and Ranger small truck.
The automaker said every part of its European business improved during the quarter.
China also contributed to Ford’s results with profit in its Asia Pacific region more than doubling to $220 million in the latest quarter.
Like other automakers, Ford still is seeing losses in economically-troubled South America.
Ford’s losses in the region widened to $256 million from $189 million in the same period a year earlier. A recession in Brazil and the currency devaluation in Argentina were the biggest factors in its growing South American losses, Ford said.
