What a difference a few years make. Back in 2009, Ford Motor Company’s North American operations were dragging down its earnings. The company reported a net loss of $1.4 billion in that year’s first quarter when market share in the U.S. was falling but rising overseas. The situation today, however, is the mirror opposite.
Today Ford reported a first-quarter net income for 2012 of $1.4 billion on the strength of sales in the States. While that’s a 180-degree turnaround compared to the same quarter in 2009, it’s still a decline in earnings compared to the $2.6 billion earned just last year. This time, however, the blame for the fall lies with Ford’s operations in Europe and Asia.
In Europe, Ford reported an operating loss this quarter of $149 million, blaming the continent’s shrinking markets and weaker demand for parts and accessories. The company’s Asian operations reported an operating loss of $95 million, which can be attributed more to investments in new plants for increased production than shrinking sales. Ford attributes the rest of its losses during the first quarter to higher tax expenses and special charges.
Fortunately, Ford’s North American operations were able to offset most of the company’s losses elsewhere. The region reported a pre-tax operating profit of $2.1 billion, up from $1.8 billion last year and the highest quarterly profit here since 2000. Revenue in this region alone was $18.6 billion, up $700 million from the same quarter last year and the largest chunk of the automaker’s global quarterly revenue of $32.4 billion, which was down $700 million.
Ford books $1.4B, profits dragged down by Europe and Asia originally appeared on Autoblog on Fri, 27 Apr 2012 10:30:00 EST. Please see our terms for use of feeds.