Europe is weak spot in Ford profit picture
- January 29, 2013 - 8:32 PM
Ford posted record profits in North America, but it's not enough to quell unease about prospects elsewhere.
Ford's shares dropped nearly 5 percent Tuesday after the company said it expects to lose more money in Europe this year and break even in Asia and South America. The final straw for investors: Ford said sales will increase next year but profits should remain about the same.
The No. 2 U.S. automaker posted record pretax profit of $8.3 billion in North America in 2012, the result of a six-year turnaround. In Europe, it lost $1.75 billion. Shares fell 64 cents to $13.14, wiping out most of their gain for this year. Ford's 2012 earnings declined by $300 million to $5.66 billion because of the loss in Europe. Earnings fell to $1.42 per share from $1.51 per share. European sales fell 15.5 percent last year, and Ford doesn't expect things to get better soon.
© 2013 Star Tribune