In my last article on Ford (NYSE:F) I explained how the company's One Ford plan spurs growth by driving sales. The recent sales report for July shows that Ford achieved a unit sales increase of 10% to 212,236 over analyst's forecasts of 8.8%. The One Ford plan involves working together as a team to achieve results. The positive July sales results demonstrate how the company worked together to produce models that consumers are demanding and how Ford is achieving results through effective sales techniques.
The company achieved positive gains in all of its segments. The Ford Fusion had record sales in July with an increase of 17% with 23,942 cars sold. SUV sales were also robust as evident in an Explorer sales increased of 32% and an Escape sales increased of 19%. The Ford F-Series surpassed 60,000 in vehicle sales, representing an increase of 5%. Lincoln sales were also positive with 7,863 vehicles sold, representing a 14% increase.
The positive results for July also reflect the strong vehicle replacement demand that I pointed out in my last Ford article. Ford is benefiting from increased sales as consumers replace their aging vehicles. The average vehicle on the road today is about 11 years old. Ford is responding well to this market condition by producing many attractive updates to its numerous vehicle models. The recent market sell-off has Ford stock selling at only 8.7X analyst's expected EPS of $1.92 for 2015, maintaining the stock's attractive undervaluation as compared to the S&P 500's forward PE of 16.5.
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