Exclusive: Ford Motor CFO Continues To See FY15 Profit 'Breakthrough'

Bob Shanks was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Ford Motor Company F's Chief Executive Robert L. Shanks continues to expect 2015 will be "a breakthrough year" for profits based on new products and improved sales in the company's North American and Asia Pacific markets.

Shanks told Benzinga Tuesday that Ford will see much of that improvement in the second half, with production fully up to speed on its new F150 truck line and its revamped Edge models.

Results in the recent period were hurt by retooling, now nearly complete, related to those two products.

Related Link: Ford Misses Q1 Views

Had both the F150 and Edge lines been built at "normal production rates" in the recent period, Shanks said more than $1 billion would have been added to Ford's operating profit of $1.34 billion, while its operating margin would have widened to more than 10 percent, from 6.7 percent.

"It gives you a feel for the impact we're expecting" as production hits its stride during the second half of 2015, Shanks said.

Earlier, Ford missed first-quarter expectations on flat revenue as earnings fell slightly to $0.23 a share, on a higher-than expected tax rate.

Up 9 percent in the past three months, Ford shares were little changed recently at $15.82.

Electric Market

In addition to the F150 and Edge, Shanks cited additional product launches as well as new capacity coming on line in both China and India.

As for electric vehicles, Shanks said demand "hasn't moved" for those products.

In order to meet regulatory requirements in coming years "we're going to need to see a much higher take rate" for electric vehicles, Shanks said. "That's what I'm concerned about."

Low demand for Ford's electric vehicles spurred the company last week to lay off about 700 workers from a Michigan production plant.

Shanks called Tesla Motors Inc TSLA a "niche product" that doesn't currently compete with Ford.

"They're very, very high priced," Shanks said.