Ford Earnings Dip 1%, Hurt by Loss in Europe

Ford Motor Co. netted $1.6 billion (€1.3 billion) in the third quarter of this year, down $20 million (€15 million) from the same period of 2011. Revenue slipped 3% to $32.1 billion (€24.9 billion).

Net income was dented by an increase in Ford's corporate tax rate to 30% from 10% a year earlier. The company's pretax earnings rose $219 million (€170 million) to $2.2 billion (€1.7 billion).

Ford's pretax operating profit in North America soared 44% year over year to a record $2.3 billion (€1.8 billion) in the July-September period, marking a 12% return on sales. But the company's loss in Europe widened 53% to $468 million (€362 million).

Ford warns that worldwide results will be weaker in the final three months of the year than in the previous quarter because of rising structural costs such as engineering, manufacturing and marketing.