E inzig business in Europe is weakening. The European subsidiary based in Cologne brought the US parent high losses.
The bottom line was that Ford earned 1.7 billion dollars, mainly thanks to the increased sales at home, and thus exceeded even the wildest expectations of the stock exchange traders . The share rose pre-IPO. In the same period last year, when the economic crisis was still raging, thanks to a rigid restructuring course, the company had already retained just under a billion dollars.
Sales were 29.0 billion dollars. Because of the sale of the Swedish subsidiary Volvo, Ford had to accept a decline of four percent. But that was only a blemish, as CEO Alan Mulally made clear. He spoke of another strong quarter and expects solid profits for the rest of the year. 2011 should then run even better.
European business writes losses
The Ford world would be fine if it weren't for Europe: Sales fell here from 7.3 billion to $ 6.2 billion. An operating profit of $ 131 million became a loss of $ 196 million. The European car market has declined overall, the group justified the weak performance, to make matters worse, Ford has lost market share and the costs have risen due to the launch of new models, among other things.
Ford is the only one of the three major US car manufacturers who survived the severe industry crisis on his own. Domestic competitors General Motors (GM) and Chrysler had to file for bankruptcy last year, from which they only found their way out with massive government aid. In the meantime, however, the situation has eased significantly for them too. GM is expected to go public in November.