The headlines about Ford's second quarter will all be about its $8.7 billion loss -- its biggest quarterly loss ever. Most of that red ink is for asset impairments and does not directly address how the core operating businesses are doing Once investors look outside the US, Ford is doing fine, but not fine enough to float Ford's entire boat Even with all of its cost cutting initiatives, Ford lost $1.3 billion in North America.
In South America, Ford posted a pre-tax profit of $388 million, up from $255 million a year ago. In Europe, the numbers were remarkably strong. Pre-tax profits there were $582 million, up from $262 million a year ago In Asia, Ford's profits were much more modest. Ford Asia Pacific Africa reported a pre-tax profit of $50 million, compared with $26 million a year ago.
In South America, Ford posted a pre-tax profit of $388 million, up from $255 million a year ago. In Europe, the numbers were remarkably strong. Pre-tax profits there were $582 million, up from $262 million a year ago In Asia, Ford's profits were much more modest. Ford Asia Pacific Africa reported a pre-tax profit of $50 million, compared with $26 million a year ago.
The earnings highlight the extent to which Ford is becoming a tale of two companies. One exists in the US market and it trapped by old products, high fuel prices, and plant which will take years to re-tool. There is nothing wrong with Ford that being out of North America would not fix. Too bad that cannot happen.
http://www.247wallst.com/2008/07/ford-f-all-the.html
http://www.247wallst.com/2008/07/ford-f-all-the.html
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