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Ford profits flat after losses in Europe | Ford profits flat after losses in Europe |
(35 minutes later) | |
Carmaker Ford has reported a slight dip in profits for the third quarter after problems in Europe offset record profits in the US. | Carmaker Ford has reported a slight dip in profits for the third quarter after problems in Europe offset record profits in the US. |
Net income fell 1% to $1.63bn (£1.01bn, 1.26bn euros). | Net income fell 1% to $1.63bn (£1.01bn, 1.26bn euros). |
href="http://media.ford.com/article_display.cfm?article_id=37249" >The company said it earned a record $2.3bn in the US, partly thanks to an increase in selling prices. | |
In Europe, where last week it announced it would close two plants in the UK and one in Belgium, sales fell sharply and it lost $468m. | |
Ford said its European sales were the lowest in 20 years. | |
It also said it believed the problems in Europe, where personal debt and government austerity is biting into consumers' income, was "structural, rather than cyclical". | |
The company said the changes it announced last week to its European operations were designed to return it to profits in the region by mid-decade, with an operating profit margin of 6-8%. | |
That compares with a margin of 12% in North America. | |
Elsewhere in the world Ford's performance was positive, with record market shares recorded in Africa and Asia. | |
Alan Mulally, Ford president and chief executive said: "While we are facing near-term challenges in Europe, we are fully committed to transforming our business in Europe by moving decisively to match production to demand, improve revenue through new products and a stronger brand, improve our cost efficiencies and take advantage of opportunities to profitably grow our business." |