The Silver Lining in Ford Motor Co.'s July Sales Decline
Only a few days after Ford Motor Company (NYSE: F) failed to impress investors and analysts with its tax-break-fueled second-quarter beat, investors were looking for a silver lining in the automaker's July sales results but bracing for another seemingly inevitable decline -- Ford's sales have declined every month in 2017 so far except for May. And while total sales did in fact decline 7.5%, the silver lining is that it's not as bad as it seems.
Ford's total July sales tallied only 200,212 units. But the two segments that make up total sales had wildly different results. Ford's retail sales were down a modest 1% to 159,492 units, while its fleet segment sales, which are generally less lucrative, plunged 26.4% to 40,720. That suggests that Ford's sales mix was healthier. Also, keep in mind that this July had one fewer selling day than in the prior year.
For comparison, General Motors' (NYSE: GM) retail sales declined a more drastic 14.4% during July, while its fleet sales -- which, to be fair, are at a much lower percentage of total sales than Ford's this year -- declined 2.8%. Furthermore, Ford's retail market share improved over the three-month period ended in July, which is positive considering the industry's cycle is at peak sales.
Source: Fool.com
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