Official: Ford reports 58% drop in Q2 profits on European losses

Filed under: Car Buying, Europe, Ford, Lincoln, Mercury

Ford Motor Company announced Wednesday that it has posted a $1 billion profit for the second quarter of 2012. That sounds like good news for the Blue Oval, until you take into account that Ford posted a $2.4 billion profit for Q2 a year ago. That is a substantial 58 percent loss.

Ford also posted $465 million in international losses, with $404 million of those losses coming directly from Europe. The automaker also increased its European loss projections to $1 billion for 2012, due in large part to the economic crisis overseas, which has resulted in increased unemployment and decreased consumer confidence.

The $404 million loss actually beat out loss projections for this quarter, based on estimates from a month ago. The result was a 1.8 percent increase in Ford's stock, based on pre-market trading this morning.

Ford's North American unit posted a profit of $2 billion in Q2 - the second economic quarter in a row in which the company posted profits in excess of $2 billion.

Additionally, the investor service Moody's returned the Blue Oval's investment grade to its 2006 status. If you recall, that was when the company leveraged nearly everything, allowing it to avoid government bailout. Before this news, Fitch Ratings had restored Ford's investment grade as well.

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Ford reports 58% drop in Q2 profits on European losses originally appeared on Autoblog on Wed, 25 Jul 2012 10:58:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2012/07/25/ford-reports-58-drop-in-q2-profits-on-european-losses/

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