|
Ford's sinking European sales numbers are consistent with the company's warning of a smaller second-quarter net profit. Although Ford's sales and profits are expected to be strong in North America, Chief Financial Officer Bob Shanks said in a government filing last month that the company's overseas losses will triple in the second quarter. He said the second-quarter profit will be lower than last year's $2.4 billion, mainly because operations outside North America, including Europe, will lose $500 million to $600 million. That would be three times the $190 million they lost in the first quarter. Ford's old models in South America are facing growing competition, and the company is losing money in Asia as it tries to build more plants and expand its offerings there. Ford is also seeing low sales and excess production capacity in Europe. Ford's report comes after French automaker PSA Peugeot-Citroen, facing diving sales in crisis-hit southern Europe, announced a cost-cutting plan Thursday that would slash 8,000 jobs in France and close a major factory north of Paris. General Motors Co. also announced on Thursday that it was replacing its top executive in Europe, apparently in an effort to speed up its restructuring there. Ford shares rose 14 cents to $9.27 in midday trading. They are down 27 percent since mid-March and have recently flirted with their October low of $9.05.
[Associated
Press;
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor