Cars and Drivers
Ford Profit Tumbles 57% on Weakness in Europe
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Ford Motor (NYSE: F) has just reported that its second-quarter net profit slid 57% to $1 billion, or $0.26 a share, as its operations in Europe and a higher tax rate offset strong results from North America. Revenue totaled $33.3 billion, a drop of $2.2 billion from second quarter of 2011.
The company continued to generate positive Automotive operating-related cash flow, and it ended the period with a strong liquidity position of $33.9 billion. That was an increase of $1 billion during the quarter.
But Ford sales are faring worse than average in Europe. In the first half of this year, Ford’s European sales fell 10%, while industrywide deliveries were off 6.3%.
Ford also lowered its full-year profit forecast and its budget for capital spending.
Shares ended Tuesday at $9.06, and the 52-week trading range is $8.95 to $13.05.
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