Ford Motor Co., the second-largest U.S. automaker, said its pretax operating profit will be “substantially lower” in the second quarter, in part because of increasing losses in Europe, South America and Asia.
Ford will be profitable and have positive operating cash flow in the three months ending June 30, the automaker said Thursday in a filing with the U.S. Securities and Exchange Commission. Ford said it expects “good results” from its North American operations.
“But our operations outside of North America are under increasing pressure,” the Dearborn, Michigan-based company’s filing said. “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 pretax loss incurred by these operations in the first quarter.”
Ford said market conditions in Europe have “deteriorated significantly” since the beginning of the year and it expects pressure on profit margins in the region “for the foreseeable future.” The automaker also will incur costs from introducing new models this year, including a new Fusion sedan and Escape sport-utility vehicle.
Ford fell 3.3 percent to $9.76 at 5:08 p.m. in extended trading, after closing up 0.7 percent in New York.
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