Ford Reports Profit in 2nd Quarter Fell 23% on 2% Dip in Revenue
Ford Motor Co. on Friday reported that its second-quarter earnings were 23% below those a year earlier. Ford was the third major U.S. auto maker to report declining profits for the period.
Ford’s net income totaled $698.7 million, compared to $909.1 million in the second quarter of 1984. Second-quarter revenue totaled $13.8 billion, down 2% from the $14.1 billion reported in the year-ago quarter.
Earlier in the week, General Motors reported that its second-quarter earnings were 28% below the year-ago period, and Chrysler earnings were down 25% from the year before.
Higher Taxes, Costs
Ford Chairman Donald E. Petersen and President Harold A. Poling said the earnings decline was accounted for by higher taxes and increased marketing and product development costs.
They said improved productivity and higher earnings from Ford’s finance and insurance operations partially offset the negative factors.
Ford’s earnings for the first six months of 1985 totaled $1.48 billion, down 18% from the $1.81 billion earned in the first half of last year. Revenue for the first half totaled $27.05 billion, down slightly from the $27.1 billion in the period last year.
GM, Ford and Chrysler--the first-, second- and third-largest U.S. auto makers, together reported profits of $2.46 billion in the second quarter, down 27% from the $3.37 billion in profits earned in the year-ago quarter.
Big 3 Sales Up 10%
Sales for the three auto makers totaled $44.86 billion, up nearly 10% from the $40.93 billion posted in the second quarter of 1984.
Ford said its second-quarter profit outside the United States totaled $88 million, compared to $167 million in the year-ago period, and attributed the decline to higher taxes.
“Despite increased competition in many foreign markets and worsening economic conditions in several Latin American countries, Ford’s before-tax profits outside the United States were higher than a year ago,” the company said.
American Motors, the nation’s fourth-largest U.S.-based auto maker, said it plans to release its second-quarter earnings report before the end of the month.
