Ford CFO Says International Losses Mounting
DETROIT (AP) — Ford Motor Co.'s shares fell in post-market trading after the company said its second-quarter profit fell due to mounting losses outside North America.
Ford's shares fell 37 cents, or 3.7 percent, after hours. They had ended regular trading up 7 cents at $10.09 on Thursday.
In a government filing, the company expanded on comments Chief Financial Officer Bob Shanks made to The New York Times.
He says Ford will make a profit in the second quarter, but it will be lower than a year ago, when the company earned $2.4 billion.
Shanks expects its operations outside North America to lose $500 million to $600 million in the second quarter. That would be triple the $190 million they lost in the first quarter.
Ford's old models in South America are facing growing competition, and the company's losing money in Asia as it tries to build more plants and expand its offerings there. Ford is also seeing low sales and excess production capacity in Europe.
"In Europe, the situation has deteriorated significantly since we gave our guidance at the beginning of the year," Shanks said in the filing.