The US carmaker Ford has continued its winning streak, reporting its ninth consecutive quarterly profit as it bounces back from near disaster.
But despite rising sales, Ford's profits dipped 8% during the second quarter amid rising commodity prices and increased expenses as the company invested in new vehicles and paid off debt.
Ford earned $2.4bn (£1.5bn) in the second quarter, compared with a profit of $2.6bn during the same period last year, although it said that the results in the second half of 2011 were expected to be lower due to higher commodity prices and seasonal trends.
Its results came as rival manufacturer Chrysler reported a net loss of $370m after repaying government loans. Unlike Ford, Chrysler was the recipient of government loans during the credit crisis. Without the payment, Chrysler would have made a profit of $181m. Chrysler's revenues jumped 30% to $13.7bn in the second quarter compared with the same period last year. Ford borrowed more than $23bn in late 2006, allowing it to avoid the bailouts and the bankruptcies suffered by Chrysler and General Motors.
"Despite an uncertain business environment, we further strengthened our balance sheet and continued to invest for the future," said Ford's chief executive, Alan Mulally.
Ford's revenues were $35.5bn for the quarter, 13% higher than the same period last year. US sales rose 15% to $19.5bn and European sales jumped 20% to $9bn. But increased expenses dampened profits and only North America provided an increase in operating profit, rising $10m to $1.9bn.
Pre-tax operating profits fell in Asia, Europe and South America. The company said it reduced its debt by $2.6bn in the second quarter.
"This wasn't the easiest of quarters," Lewis Booth, Ford's chief financial officer, said. In North America and Europe, "demand was a little bit weaker in both markets versus the first quarter" because of Europe's debt crisis and supply constraints in North America.
But, Lewis added: "We are on track for solid results in 2011.
"Going forward, we will continue building on this solid foundation for future investment and growth."
Ford is about to begin negotiations with the United Auto Workers union over a new labour contract. The company made $6.6bn last year and the union wants its members to share in its new-found prosperity.
The carmaker lost $30.1bn between 2006 and 2008, before earning $9.28bn in the past two years.
