Matching forecasts, Ford Otosan in Turkey posted a 130% climb in first-quarter net profit to 71 million lira ($47 million). Ford Otosan further predicted that its profitability will continue improving.
Ford Otosan, a venture between Ford Motor Co. and Turkey's Koc Holding, recorded sales in the first quarter to rise by 66% to 1.394 billion lira.
When compared to the first quarter of 2009, profit had almost halved and sales were lower by nearly 60%. In the later part of 2009, the economy started to recover and it's expected that it is on the track to recovery.
In a statement, Ford Otosan revealed that its operating profit margin had grown to 7% in the first quarter from 4% a year earlier as capacity utilization, production and sales volumes increased.
The unit further said that in the next few months, its profitability will continue to improve, along with a rise in production and unit sales.
Ford Otosan's total market share increased to 15.1% at end-March from 13.4% a year earlier. Meanwhile, its market share in light commercial vehicles increased to 21.1% from 17.9 and in passenger cars to 10.1 from 8.9%.