American car manufacturer Ford has managed to become profitable in Europe for the first time in three years. Excellent Asian results and record North American numbers complete Ford's great year.
Small European profit
Ford managed a 1.3 billion dollar (nearly 1 billion euro) net profit in its second quarter, 6 % higher than a year ago. Total turnover dropped slightly to 37.4 billion dollars (27.8 billion euro, - 1 %). Ford aims to reach a full-year EBITDA profit of 7 to 8 billion dollars (5.2 to 6 billion euro). Last year, it reached 8.6 billion dollars (6.4 billion euro).
Ford's European profit reached 14 million dollars (10 million euro), a huge increase compared to the 306 million dollar (227.7 million euro) loss it had last year. Huge restructuring costs, like a factory closure in Belgium, were to blame for the negative numbers last year.
Strong Chinese sales
Asian sales were boosted thanks to excellent Chinese sales, which went up 26 %. Ford, which now has a 4.6 % market share in China, now has a 159 million dollar (120 million euro) pre-tax profit over there.
Ford's largest market, North America, also performed well. Its pre-tax profit grew from 2.32 billion dollars (1.75 billion euro) to 2.44 billion dollars (1.8 billion euro), despite lower turnover and fewer cars sold. Lower costs for parts and materials helped grow profit.
Latin America was the odd one out in the second quarter, with a 295 million dollar (219 million euro) loss because of weaker sales and disappointing exchange rates.