Ford Motor Company reported on Wednesday the U.S. automaker posted a profit of 1.04 billion U.S dollars in the second quarter of the year, or 26 cents per share, down by 57 percent from the same period last year.
Though Ford still managed to continue its 12-quarter streak of notching a pre-tax operating profit, the company's second quarter net income of the year was far below the 2.4 billion dollars reported for same period a year ago.
Ford cited higher tax expenses and lower operating results with the company's European, South American, and Asia Pacific and Africa divisions for the decrease of more than one billion dollars in the company's profits.
Weighing most heavily on Ford was poor performance in Europe, with the unit suffering a 404-million-dollar loss in the 2012 second quarter. Ford Europe recorded a 176-million-dollar profit for the same time last year.
Ford said it now expected its European division to suffer a full-year loss of more than one billion dollars due to the "deteriorating external environment" and economic difficulties facing the region.
While Ford Executive Vice President and Chief Financial Officer Bob Shanks acknowledged the challenges in Europe, he declined to comment further on methods the company would take to address the situation.
"We are reviewing all areas of our business to address the near-term challenges, while ensuring we build a strong foundation for our future," said Shanks. "It is premature to discuss details of what our plans may be in response to the situation in Europe, but we will continue to communicate our plans at the appropriate times with all of our stakeholders."
Despite the negativity abroad, Ford's North American division actually posted a year-over-year improvement in net income. Before taxes, Ford North America notched a 2.01-billion-dollar profit for the second quarter of the year, up from the pre-tax 1.91 billion dollars reported for the same period last year.
Ford said its North American 2012 outlook remains unchanged, with the company expecting significantly higher pre-tax operating profit and margin compared with that of 2011.
Ford Asia Pacific Africa posted a 66 million dollar loss in the 2012 second quarter. Ford South America came out positive with a 2012 second quarter pre-tax net income of five million dollars, but still well below the 267 million dollar pretax income reported for the same period last year.
Ford said it now expects the company's 2012 full-year pre-tax operating profit to be strong, but lower than 2011.
Ford stock closed down about one percent in trading on the New York Stock Exchange Wednesday.