Ford is doing very well in its North America home region, but company executives are now “happy” that Ford’s three other key ares – South America, Asia Pacific and Africa and Europe – posted a combined profit for the quarter for the first time since the second quarter of 2011.
Most encouraging to Ford is the improving situation in recession-hit Europe, where it has been losing money for years. Ford’s third-quarter losses dropped to $228 million from $468 million last year.
“While we lost money in Europe, it was 51 percent less than last year,” said Ford CFO Bob Shanks. “That’s what everybody’s been waiting to see: Can you get the other businesses moving in the right direction? We’ve got a lot more work to do, but the progress is exciting. We believe we have reached a level of stability. Signs point to very modest growth over the near term.”
Ford expects its full-year loss in Europe to be smaller than 2012’s $1.7 billion loss after it previously forecasted losses would match 2012 levels.
Ford is also particularly happy about its rapidly expanding Asia Pacific and Africa regions, where it gained market share and had a record third quarter pretax profit of $126 million. Ford’s market share jumped to a record 3.7 % in Asia Pacific and Africa fueled by a 4.3 % share in China.
Via Automotive News Europe