Ford shares rise on best Q1 profits for 13 years

US CAR giant Ford unveiled its best first quarter profit in 13 years yesterday as the company shrugged off the effects of the Japanese earthquake that has hit competitors hard.

The firm's net profit of $2.6 billion (1.6bn), up from $2.1bn for the same period last year, was driven by strong sales in its home market where demand for more fuel-efficient vehicles is benefiting Ford's latest models.

The company said that last month's earthquake in Japan had "minimal" impact on its business.

Lewis Booth, Ford's chief financial officer, said that since the earthquake in Japan, the firm had lost the production of 12,000 to 14,000 vehicles in Asia, where it shut several plants temporarily.

Analysts now believe Ford may stand to gain from the disaster, which has seen Japanese car companies drastically scale back production due to a shortage of essential parts from the affected regions.

Firms such as Toyota and Honda are Ford's main competitors in the US small car market, which is of growing importance as Americans abandon their gas-guzzlers in the face of rocketing fuel prices.

Ford is the first US car maker to report results since the earthquake in Japan jolted the global supply chain for car parts.

The American heavyweight beat analysts' expectations with revenue of $33.1bn, up from $28.1bn last year, sending its shares higher in early US trading.

The company's European division recovered after its $51 million loss in the final quarter of 2010 was blamed for a poor global performance.

The European arm made a pre-tax operating profit of $293m, in the first three months of 2011, up from $107m a year ago.

Ford expects to produce 1.46 million cars and vans globally in the three months to the end of June, but warned that higher commodity costs may hit growth.