CAR MAKER:US car maker Ford, which reported a better-than-expected second-quarter profit yesterday, doubled its forecast for losses in Europe due to a deepening economic crisis that has pushed overall car sales to their lowest level in nearly 20 years.
The company now expects to lose more than $1 billion (€822 million) in Europe.
Earlier this year, Ford forecast an annual loss of between $500 million and $600 million.
The company also predicted it would see a lower full-year operating profit compared with 2011 due to steeper losses in Europe and slowing growth in South America.
“As we look over the next five years and lay out all of our plans for our business, we just think the situation in Europe is going to be challenging,” chief financial officer Bob Shanks told reporters at Ford’s headquarters in Dearborn, Michigan.
The projected losses in Europe were roughly in line with Wall Street estimates.
Ford posted second-quarter net income of $1 billion, or 26 US cents per share, down from $2.4 billion, or 59 cents per share, a year ago.
