Ford reveals £1.36bn profit despite European losses

Posted on 30 Oct 2012 by Tim Brown

Ford has reported a third-quarter pre-tax record profit of $2.2bn (£1.36bn) and best-ever results for any quarter in North America but made a $468 million pretax loss in Europe.

The earnings per share of 40 cents beat the expectations of 30 cents awhile revenue was $32.1 billion for the quarter.

The company also narrowed its guidance for US auto sales this year to 14.7 million.

As expected, the results were stronger than the second quarter when Ford reported a 57% drop in earnings.

Ford has said its losses in Europe this year could exceed $1.5 billion, some of that related to costs to the shutting of three operations in the U.K. and Belgium, starting next year.

Ford is cutting 5,700 jobs in addition to 500 salaried buyouts.

“While we are facing near-term challenges in Europe we are fully committed to transforming our business in Europe by moving decisively to match product to demand,” said CEO Alan Mulally in a statement.

In Asia-Pacific and Africa where Ford is investing heavily to get a bigger foothold in the market, especially China, the automaker had a $45m pretax profit compared with a $43m loss a year ago.

“Ford’s more balanced product mix with a stronger presence in the small car segments enabled the company to operate at highly profitable levels in the North American and emerging Asian markets whereas the European operations continued to struggle,” said Jesse Toprak, senior analyst at

On Monday, Chrysler reported a third-quarter profit of $381 million, up 80% from a year ago. Fiat, Chrysler’s major shareholder with 68%,  has more than doubled its third quarter profits to €286m (£230m), up from €112m in the same period last year. Its revenues were up 16% to €20.4 billion but Fiat suffered a loss of €238m (£191m) in EMEA.

General Motors is scheduled to report its earnings Wednesday.