Skip navigation
Newswire

Ford sees stronger Europe results in second half

TRAVERSE CITY, Mich., Aug 6 (Reuters) - Ford Motor Co. will post better results for its European operations in the second half of the year after posting surprisingly weak results in the second quarter, Ford President Nick Scheele said on Wednesday.

"I anticipate significantly better results in the second half of the year in Europe," Scheele told reporters following a speech at an automotive conference here.

Ford lost $773 million, before taxes, in the first half of this year in Europe, including a loss of $525 million in the second quarter. Results were hit by lower vehicle prices, heavy competition and currency fluctuations.

Scheele said the recent weakening of the British pound against the euro will help Ford in Britain, where much of its manufacturing is based and where Ford is the market leader.

"For years, because of sterling, Britain was significantly more expensive than other European markets, that has now completely reversed," he said.

He said that has hindered the ability of European automakers to undercut Ford and offer special deals in Britain. "That will enable us to gain market share," he said.

Scheele reiterated that Ford's goal this year remains to earn 70 cents per share. "That is still our goal, that is still our plan," he said.

Ford has been forced to raise its cost-cutting goal this year to $2.5 billion to meet its earnings target. Through June, Ford had cut $1.9 billion in costs.

Scheele also denied industry reports that Ford would discontinue its Lincoln Aviator mid-size sport utility vehicle as early as 2005 due to poor sales.

He said sales of the Aviator, which was launched late last year, are on track, and will total about 30,000 annually. Ford sold 15,164 Aviators in the United States through the first seven months this year.

"Always we will drop something at some stage, but we have taken no decision on Aviator," he said.