US is where the profits continue to be earned while the rest of the world provided a loss of some $7 million USD Pre-tax. Wayne Gerdes – CleanMPG – July 26, 2017 2017 Ford F-250 Super Duty and F-150 Raptor The power behind Ford’s earnings have a lot to do with these two offerings. In the U.S. F-Series had its best second quarter sales performance since 2001, with a 7 percent gain compared to last year. Average transaction prices of $45,400 per truck were up $3,100 from a year ago and led the segment. Ford’s Q2 net income was $2.0B, total company revenue was $39.9B; EPS was $0.51, all up year over year. Pre-tax results of $2.191 billion USD were down a significant 22.6 percent from the $2.832 billion in the Q2 of 2016. Total Company adjusted pre-tax profit of $2.5B and lower tax rate drove adjusted EPS of $0.56, up $0.04 year over year. Lower adjusted pre-tax profit due to higher commodity cost, mainly steel, unfavorable exchange and non-repeat of last year’s gain on the sale of majority stake in OEConnection LLC. In the U.S.: Year-over-year average transaction prices rose nearly five times the industry average in the quarter and incentives declined as a percent of vehicle price, while the industry increased. Automotive profits driven by North America, with Europe and Asia Pacific also profitable; outside North America, other regions were about breakeven in total; Ford Credit pre-tax profit was $619 million USD, up 55 percent year over year. Regional Pre-tax Profits in Detail North America: Profit of $2.198 billion USD, down $505 million from the Q2 of 2016 profit of $2.703 billion USD South America: Loss of $185 billion USD, down $185 from the Q2 2016 loss of $265 million USD Europe: Profit of $88 million USD, down $379 million USD from the Q2 of 2016 profit of $467 million USD. Middle East and Asia: Loss of $53 million USD, down $12 million from the Q2 of 2016 loss of $65 million USD. Asia Pacific (incl, China): Profit of $143 million USD, up $151 million USD from the Q2 of 2016 loss of $8 million USD. Automotive operating cash flow was positive. Ford Forecast Expect full-year shareholder distributions of about $2.7B with full year adjusted EPS of $1.65 to $1.85 and an adjusted effective tax rate expected to be about 15 percent.