Ford says int'l losses could hit $750M
WASHINGTON - Ford Motor Company said Thursday that its losses on international operations could hit $570 million in the quarter ending this week, but would not be enough to offset profits from domestic sales.
In a filing with the Securities and Exchange Commission, the number-two US automaker said it expects second-quarter pre-tax operating profits, excluding special items, "to be substantially lower than the same period a year ago."
"We continue to expect good results for Ford North America and Ford Credit during the second quarter, but our operations outside of North America are under increasing pressure," the statement said.
"In fact, our combined results for the second quarter for Ford South America, Ford Europe, and Ford Asia Pacific Africa could be a loss of about three times as much as the $190 million pre-tax loss incurred by these operations in the first quarter."
In South America, the company said, it was running into greater competition and pricing challenges as well as weakening currencies.
Europe's turn into recession has hit sales there, biting into its margins, Ford said.
"We are impacted by the serious economic crisis, compounded by an intensifying competitive environment as manufacturers react to lower consumer demand and excess production capacity."
In its Asia Pacific Africa division operations are better, but Ford said it was "not yet fully realizing the associated revenue of new products and facilities."
"While our volume is up in the region, our investment and growth costs are rising faster for now."
"For the full year, we continue to expect to be solidly profitable," it added.
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