Ford Profit Falls 86% Due To Restructuring Costs

DEARBORN (CBS DETROIT/AP) — Ford’s net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America, and the company said more shake-ups are coming.

Chief Financial Officer Tim Stone said Wednesday that the company booked charges of $1.2 billion during the quarter as it moved to close factories in Europe and South America.

And, despite the factory closings and cutting 7,000 white-collar jobs globally, Ford says it isn’t done overhauling its operations.

Stone said Ford is in the early stages and expects up to $1.8 billion more in charges later this year as part of an $11 billion overhaul during the next several years. He wouldn’t give further details on what remains, saying management hasn’t decided on ideas to further redesign Ford.

“We’re already starting to see some early benefits,” he said. “A lot of work to do.”

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