US car maker Ford today reported a fall in profit in the second quarter, signaling higher commodity costs were weighing on earnings.
Second-quarter profit fell 8% from a year ago, to $2.4 billion, Ford said. The second-largest US car maker said that it had earnings per share of 65 cents, excluding special items, topping analysts' estimate of 60 cents.
Revenue was $35.5 billion in the April-June period, up 13% from the second quarter of 2010. It was the ninth consecutive quarterly profit for Ford, the only major US car maker that did not seek a government bail-out during the 2008-2009 financial crisis.
'We delivered very good second-quarter results while growing the business globally and serving more customers in every region,' Alan Mulally, Ford president and chief executive, said.
The company said it continued to focus on investing for the future, but reiterated a warning that it expects 'second-half results will be lower than first half.'
'This reflects increasing commodities and structural costs, as well as seasonal factors that tend to favor the first half,' it added.
Chrysler deal lifts Fiat's performance
Italian car giant Fiat has reported a profit for the second quarter of this year after a loss 12 months earlier. It also revised up its forecasts for 2011 following its integration with US brand Chrysler.
Fiat profits amounted to €1.24 billion, the company said, following consolidation of Chrysler into its accounts in June. The group said it was now aiming for a net profit of €1.7 billion for the year compared with a previous forecast of €300m.
Operating profit - a key indicator for industry - also rose to €525m from €307m a year earlier, while turnover rose 40% over 12 months.
Fiat took over the management of Chrysler in June 2009 after the US company emerged from bankruptcy. It has steadily increased its stake in Chrysler, reaching a share of 53.5% after paying back US and Canadian government loans.
The aim is for the two firms together to create a global auto giant producing six million vehicles a year from 2014 compared with around four million now.
