Ford Slashes Guidance As European Losses Cut Profits 57%

Ford F150 Raptor

Photo: MSVG via flickr

Automotive giant Ford Motor reported slightly better-then-expected earnings before the opening bell, even as European sales continued to weigh on the company.Click here for updates >

The manufacturer reported a second quarter operating profit of $1.8 billion, or $0.30 per share. That was above expectations for $0.29.

Nonetheless, difficulties overseas cut net income by 57 per cent to $1 billion. 

Revenue topped Wall Street consensus, even as it declined 6.2 per cent to $33.3 billion.

“The Ford team delivered another solid quarter driven by the strength of Ford North America and Ford Credit,” Chief Executive Alan Mulally said.

The Dearborn, Mich., based automaker said it expected to earn a lower profit this year than it recorded in 2011.

Sales in continental Europe declined 20 per cent and the unit’s loss tripled. 

“We are reviewing all areas of our business to address the near-term challenges, while ensuring we build a strong foundation for our future,” Ford CFO Bob Shanks said. “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.” 

Shares are more than 2 per cent higher in pre-market trade.

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