Better than Blue Book

25 July 2012 By Antony Currie Follow @AntonyMCurrie

The Detroit automaker made clear in its latest results that it has some kinks to hammer out in Europe and South America. But its U.S. business is cruising along nicely and the balance sheet is well-tuned. Ford isn’t the lemon the market valuation implies.

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Ford Motor on July 25 reported second-quarter net income of $1 billion, or 26 cents a share. Ford North America’s pre-tax income was $2 billion and its pre-tax operating margin was 10.2 percent. Ford Europe lost $404 million before tax while its South American operations earned just $5 million before tax.

The company expects losses at its European arm to hit more than $1 billion this year, nearly double its previous estimate, and reckons profit from South America will be “substantially lower.”

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