Ford lost some of its European profit

Posted on Thursday, 26 July 2012 , 07:07:58 byIulia

Filed under fordamericanprofitlosseuropecrisisFordAmericanEuropean

Ford lost some of its European profit


It seems that the American Blue Oval, Ford has some financial difficulties. Even though the specialists have announced a $1 billion profit for the second quarter of 2012, a year ago, they posted a $2.4 billion profit for Q2. It is all about the math. They suffered a 58% loss. The main problems come from Europe and Ford declared they have $465 million international losses $404 million coming are just from Europe. The economic crisis seems to the issue here. The unemployment increased and so the confidence of the consumer decreased. The net income was affected in the second quarter of 2012 from the release of the tax valuation allowance in the fourth quarter of last year. Even though the company expects Fors South America to be profitable for the whole year, it now expects the level to be substantially lower than last year. This might be because of the increased competitive pressure, weakening currencies and changes in the government policies. These last ones affect trade and access to foreign currency. The carmaker is looking for ways to improve competitiveness by improving operating costs. So they want to introduce an all-new lineup of global products in the next two years. They will begin with the all-new Ranger, EcoSport and Fusion. All these will be ready before the end of this year. The American specialists are aware of the situation in Europe and take it as a challenge. In the Asia Pacific Africa the situation was better a year ago, but now things are not so bright. Ford hopes to get better results in the second half of 2012. The pre-tax results decreased as they were in line with expectations and they are explained by fewer lease terminations. Fewer vehicles were sold at a gain and lower financing margin. The carmaker anticipates a 45.000 unit production decrease due to North American and European summer shutdowns.