New York - Ford, the second-largest US automaker, said Wednesday second-quarter profit dropped sharply, as losses in Europe and overseas cut into North American gains.
Ford reported profit in the quarter of $1.0bn, less than half of what it earned a year ago. The results included a $404m loss in Europe.
Earnings of 26 cents per share in the quarter missed Wall Street estimates by 2c.
Revenue of $33.3bn marked a decline of $2.2bn from the 2011 second quarter.
Ford Motor Company said profits were driven by Ford North America and financial business Ford Credit, delivering the company's 12th consecutive quarterly pre-tax operating profit.
Ford North America generated near-record pre-tax operating profit of $2bn in the April-June period, and the company said its outlook for 2012 North America profits remains unchanged.
In Europe, where Ford and other automakers have been suffering from slack sales amid the eurozone's sovereign debt crisis, the US automaker said it now expects its full-year loss to exceed $1bn.
"The company recognises the seriousness of the situation in Europe, and views the challenges the industry faces as more structural than cyclical in nature," the company, based in Dearborn, Michigan, said.
"While Ford is affected significantly because of its strong presence in the region, the company understands what is needed to achieve profitability and to generate an appropriate return on investments."