DEARBORN, Mich. -

Ford’s second-quarter results released Tuesday revealed that the automaker’s North American wholesales in the second quarter came in at 736,000, up 77,000 from a year ago.

This is some good news for auctions that have been seeing lower wholesale volumes for some time.

Moreover, North American revenue came in at $19.5 billion, up $2.6 billion from the second quarter of the prior year.

“In the second quarter, North America reported a pre-tax operating profit of $1.9 billion, an increase of $10 million from a year ago,” according to management. “This reflects significant improvement in net pricing, driven by the strength of its products and favorable volume and mix.

“These were offset by higher costs, including increases for new products, commodities and structural costs,” management added.

Ford reported overall company net income of $1.4 billion, or 59 cents per share, down $201 million, or 2 cents per share, from the same period of 2010.

However, management stressed that the “period was marked by continued automotive growth, solid profitability and strong cash flow, and a continued focus on strengthening the balance sheet and investing for the future.”

Second-quarter pre-tax operating profit came in at $2.9 billion, or 65 cents per share, down $64 million, or 3 cents per share, year-over-year.

While total automotive result improved, management noted that this improvement was offset by an “an anticipated” reduction in financial services results.

“We delivered very good second-quarter results while growing the business globally and serving more customers in every region,” pointed out Alan Mulally, Ford president and chief executive officer. “Despite an uncertain business environment, we further strengthened our balance sheet and continued to invest for the future.”

Discussing entire company results, Mulally said volume was up 7 percent year-over-year, while revenue was up 13 percent.

He also stressed that this is the eighth consecutive quarter of pre-tax operating profit, hitting $2.9 billion for the period. Both automotive and financial services were profitable, he noted.

In another highlight, Mulally reported that Ford’s automotive debt is at $14 billion, “a $2.6 billion reduction from the first quarter.”

He went on to point out that market share in North America, Europe and Asia Pacifica Africa were all up as compared to a year ago.

The CEO also boasted that Ford grew sales volume in Turkey by more than 40 percent, while Russian volume was up 30 percent.

Another trend of note is that the company plans to add 340 new dealerships in China by 2015. Mulally also said the company revealed new production plans for Europe that entail at least 20 all-new or significantly freshened vehicles over the next three years.

Ford also plans to triple the production of e-vehicles in the U.S. to more than 100,000 by 2013.

First-Half Results

For the first six months of the year, Ford earned a pre-tax operating profit of $5.7 billion, net income of $4.9 billion and reported automotive operating-related cash flow of $4.5 billion.

The second-quarter income was impacted by several unfavorable items totaling $272 million, compared to $177 million a year ago. These special items include personnel reduction actions, Mercury’s discontinuation, as well as other dealer-related actions in North America and pension settlements in Belgium.

“We are on track for solid results in 2011, including delivering on our guidance for improved full-year pre-tax operating profit and automotive operating-related cash flow compared with last year,” explained Lewis Booth, Ford executive vice president and chief financial officer.

“Going forward, we will continue building on this solid foundation for future investment and growth,” he added.

Total Automotive Results

Looking specifically at the automotive division, the company reported pre-tax operating profit of $2.3 billion, up $209 million from the previous year.

“The improvement was driven by higher net pricing at each of the automotive operations, favorable volume and mix in North America and lower net interest expense. Net interest expense improved due primarily to debt repayments made since the beginning of the second quarter 2010,” management indicated.

Total vehicle wholesales in the second quarter came in at 1.5 million, up 101,000 from second-quarter 2010. Management noted that every business segment reported higher wholesales.

Total automotive revenue in the quarter was $33.5 billion, up $4.7 billion.

Other Automotive Business Unit

This division reported a loss of $76 million, which is actually an improvement of $475 million from a year ago.

“The improvement primarily reflects lower net interest expense from significant debt-reduction actions. For the first half, Ford’s net interest expense was about $700 million lower than the same period last year,” management said.

As for the financial services division, it reported a pre-tax operating profit of $602 million, a $273 million decrease year-over-year.

Looking Ahead

For the first half of the year, Ford said the seasonally adjusted annual sales rate was 12.8 million in the U.S. and 15.4 million for the 19 markets Ford tracks in Europe.

“Ford is maintaining its U.S. full-year industry volume outlook in the range of 13 to 13.5 million units,” management revealed. “For the 19 markets Ford tracks in Europe, after a strong first half, Ford sees some sign of weakness related to the debt crisis and fiscal austerity programs. Ford now forecasts the industry in Europe to be in a range of 14.8 million to 15.3 million units, compared with 14.5 million to 15.5 million units previously.”

Management went on to note that “quality remains mixed due to some near-term issues in North America, which Ford is addressing.”

However, Ford officials did say they are pleased with the progress on these issues.

Ford management also believes they’re on track to grow quality in international operations, as well.

The company forecasts that its full-year U.S. total market, its U.S. retail share of the retail market and its European market share will be steady or improve year-over-year.

The company indicated its second-quarter and first-half performances were “very good.”

However, it continues to expect that second-half results will be lower than the first half.

“In the automotive sector, this reflects increasing commodities and structural costs, as well as seasonal factors that tend to favor the first half,” management pointed out.

The automaker also anticipates that its third-quarter production will come in at about 1.4 million units, up 92,000 from a year ago.

“We are making consistent progress on our commitment to deliver profitable growth for us all,” Mulally stressed. “Going forward, we remain focused on aggressively managing short-term challenges and opportunities and strengthening the foundation to deliver our mid-decade plan and serve a growing group of Ford customers around the world.”

To view full details of Ford Credit’s results, visit the article from Tuesday on our sister site SubPrime Auto Finance News here.