Ford profit dips for quarter, and Chrysler records a loss
Ford’s ambitious plans to grow in Asia took a toll on its second-quarter profit, with higher costs to design and sell new cars offsetting rising sales.
Meanwhile, Chrysler retreated to a loss for the second quarter, but only because the expense of shedding its government debt erased what would have been a modest profit.
Chrysler, just two years out of bankruptcy protection, maintained that there were healthy signs despite the loss. Its turnaround continues with a revamped lineup of cars and trucks that is drawing more customers.
General Motors will report results next week.
Ford, which operates an assembly plant at Claycomo, earned $2.4 billion, or 59 cents a share, down 8 percent from $2.6 billion, 61 cents a share, a year earlier.
Ford Motor Co. warned last month that its profit could slip, citing investments in future products. Worldwide sales rose 7 percent, but the company spent $400 million more than it did last year to engineer and advertise new vehicles.
In Asia it plowed money into new cars and trucks. The result was a pretax profit of just $1 million, down $112 million from the same time last year.
For the second quarter, revenue rose 13 percent to $35.5 billion.
Chrysler reported a $370 million net loss from April through June, but said it’s only because of a $551 million one-time accounting charge for refinancing bailout debts to the U.S. and Canadian governments. Without the expense, Chrysler said it would have earned $181 million.
Revenue for the quarter jumped 30 percent to $13.7 billion as U.S. sales rose more than 20 percent.
Still, Chrysler’s net loss for the quarter was more than double its second-quarter loss last year, when it struggled with poor sales and payments on high-interest government loans.
http://www.kansascity.com/
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