Ford Q2 profit dives on Europe, overseas losses

Agence France-Presse
The company says losses in Europe cut into North American gains

NEW YORK, United States – Ford, the second-largest US automaker, said Wednesday second-quarter profit dropped sharply, as losses in Europe and overseas cut into North American gains.

Ford reported profit in the quarter of $1.0 billion, less than half of what it earned a year ago. The results included a $404 million loss in Europe.

Earnings of 26 cents per share in the quarter missed Wall Street estimates by two cents.

Revenue of $33.3 billion marked a decline of $2.2 billion from the 2011 second quarter.

Ford Motor Company said profits were driven by Ford North America and financial business Ford Credit, delivering the company’s 12th consecutive quarterly pre-tax operating profit.

Ford North America generated near-record pre-tax operating profit of $2 billion in the April-June period, and the company said its outlook for 2012 North America profits remains unchanged.

In Europe, where Ford and other automakers have been suffering from slack sales amid the eurozone’s sovereign debt crisis, the US automaker said it now expects its full-year loss to exceed $1 billion.

“The company recognizes the seriousness of the situation in Europe, and views the challenges the industry faces as more structural than cyclical in nature,” the company, based in Dearborn, Michigan, said.

“While Ford is affected significantly because of its strong presence in the region, the company understands what is needed to achieve profitability and to generate an appropriate return on investments.” – Agence France-Presse