Cars and Drivers
Why Ford's February Sales Were Good News Even Though Volume Is Down
Published:
Last Updated:
Ford Motor Co. (NYSE: F) on Wednesday reported a U.S. sales decrease of 4% in February, to 208,440 Ford and Lincoln vehicles, compared with February 2016 sales of 217,912. Truck sales rose 3.9% for the month, and sales of F Series pickups increased by 8.7%. Retail sales declined 3% in February to 134,576.
Total sales compare to an estimate of 204,000 by analysts at Kelley Blue Book (KBB), who also estimated an average transaction price of $38,601, up 5.5% year over year and down 1.3% compared with January’s average selling price. KBB transaction prices do not include applied consumer incentives.
The company said its overall average transaction prices rose $1,900 year over year.
Sales of the Ford F-Series pickups rose 8.7% year over year in February to 65,956 units. In January, Ford sold 57,995 F-Series trucks, following a December sales total of 87,512.
Truck sales comprised about 40% of all Ford sales in February, and the F-Series pickups accounted for about 31.6% of total February sales.
Sales of the company’s sport utility vehicles (SUVs) posted a year-over-year increase of 5.9% in February.
Ford Fiesta sales rose 6% year over year and Taurus sales rose 5.3%, but both increases came on a small base. Mustang sales fell 17% and Focus sales fell 31.8%.
Sales of the Lincoln brand rose 8.8% year over year in February, as sales of Lincoln cars jumped 16.2% on sales of the all-new Lincoln Continental. Car sales totaled 3,170 units in the month, and utility vehicle sales totaled 5,574 units. SUV sales rose 4.9% year over year in February.
Higher-than-expected sales and an improved average selling price outweighed the year-over-year decline in unit sales.
Ford’s stock traded up about 1.2% early Wednesday to $12.70, in a 52-week range of $11.07 to $14.22. The 12-month consensus price target is $13.34.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
