The Blue Oval reported today a second quarter profit of US$1 billion (€827 million), down 57 percent or US$1.4 billion (€1.16 billion) over the same period last year, as the company’s losses in Europe piled up.
Net income in the first half of the year was also affected dropping from US$4.9 billion (€4.05 billion) in 2011 to US$2.4 billion (€1.98 billion) in 2012.
“The decrease in total Automotive pre-tax operating profit and operating margin was more than explained by lower results at Ford Europe, Ford South America, and Ford Asia Pacific Africa,” the company said in a statement.
While the automaker performed well in North America recording a second straight quarter with profits of more than US$2 billion (€1.65 billion), up from US$1.9 billion in 2011, the company recorded European pretax operating losses of US$404 (€334 million), from a loss of $149 million in the first quarter and profit of $176 million a year earlier.
In other regions around the world, Ford’s South American operations made only US$5 million, down from $267 million last year, while in Asia-Pacific and Africa, the Blue Oval reported a pretax operating loss of $66 million compared with a $1 million profit in 2011.
“We are reviewing all areas of our business to address the near-term challenges, while ensuring we build a strong foundation for our future,” said Bob Shanks, Ford executive vice president and chief financial officer.
“It is premature to discuss details of what our plans may be in response to the situation in Europe, but we will continue to communicate our plans at the appropriate times with all of our stakeholders,” he added.
