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| Ford profits flat after losses in Europe | Ford profits flat after losses in Europe |
| (about 3 hours later) | |
| Carmaker Ford has reported a slight dip in profits for the third quarter after losses in Europe offset record profits in the US. | Carmaker Ford has reported a slight dip in profits for the third quarter after losses in Europe offset record profits in the US. |
| Net income fell 1% to $1.63bn (£1.01bn, 1.26bn euros). | Net income fell 1% to $1.63bn (£1.01bn, 1.26bn euros). |
| The company said it earned a record $2.3bn in the US, partly thanks to an increase in selling prices. | The company said it earned a record $2.3bn in the US, partly thanks to an increase in selling prices. |
| Fiat's third quarter results were also released on Tuesday and told a similar tale of strong US sales and losses in Europe. | Fiat's third quarter results were also released on Tuesday and told a similar tale of strong US sales and losses in Europe. |
| Ford said European car sales across the industry were the lowest in 20 years. | Ford said European car sales across the industry were the lowest in 20 years. |
| Ford last week announced it would close two plants in the UK and one in Belgium following a sharp fall in sales in the region. | Ford last week announced it would close two plants in the UK and one in Belgium following a sharp fall in sales in the region. |
| Italy's Fiat more than doubled its third quarter profits, helped by strong North American sales figures at its Chrysler unit. | Italy's Fiat more than doubled its third quarter profits, helped by strong North American sales figures at its Chrysler unit. |
| Net profit for the quarter to the end of September was 286m euros ($369m), up from 112m in the same period a year ago. | Net profit for the quarter to the end of September was 286m euros ($369m), up from 112m in the same period a year ago. |
| The Italian car giant said the European market would not recover until 2014. | The Italian car giant said the European market would not recover until 2014. |
| Fiat has warned in the past it may have to shut one its five Italian plants and that sales in its home country - one of the worst affected by the eurozone's economic crisis - were down to levels seen 40 years ago. | Fiat has warned in the past it may have to shut one its five Italian plants and that sales in its home country - one of the worst affected by the eurozone's economic crisis - were down to levels seen 40 years ago. |
| European woes | European woes |
| Ford said it believed the problems in Europe, where personal debt and government austerity is biting into consumers' income, was "structural, rather than cyclical". | Ford said it believed the problems in Europe, where personal debt and government austerity is biting into consumers' income, was "structural, rather than cyclical". |
| It said the changes it announced last week to its European operations were designed to return it to profits in the region by mid-decade, with an operating profit margin of 6-8%. | It said the changes it announced last week to its European operations were designed to return it to profits in the region by mid-decade, with an operating profit margin of 6-8%. |
| That compares with a margin of 12% in North America. | That compares with a margin of 12% in North America. |
| Elsewhere in the world Ford's performance was positive, with record market shares recorded in Africa and Asia. Fiat, too, did well in the faster-growing emerging markets. | Elsewhere in the world Ford's performance was positive, with record market shares recorded in Africa and Asia. Fiat, too, did well in the faster-growing emerging markets. |
| Alan Mulally, Ford president and chief executive said: "While we are facing near-term challenges in Europe, we are fully committed to transforming our business in Europe by moving decisively to match production to demand, improve revenue through new products and a stronger brand, improve our cost efficiencies and take advantage of opportunities to profitably grow our business." | Alan Mulally, Ford president and chief executive said: "While we are facing near-term challenges in Europe, we are fully committed to transforming our business in Europe by moving decisively to match production to demand, improve revenue through new products and a stronger brand, improve our cost efficiencies and take advantage of opportunities to profitably grow our business." |