DETROIT (AP) - General Motors
General Motors says second-quarter profit fell 85 percent as recall costs chopped $1.5 billion from the bottom line.
The automaker posted a net profit of $190 million, or 11 cents per share, including restructuring and recall-related expenses. A year ago GM made $1.26 billion, or 75 cents per share.
Without one-time items GM would have made 58 cents per share, equaling Wall Street's expectations.
So far this year GM has recalled almost 30 million vehicles, a company record.
GM took a number of pretax charges tied to the recalls. They Include $400 million to compensate victims of ignition-switch related crashes; $874 million to account for recall expenses during the next 10 years; and $1.2 billion for recalls announced during the quarter. The after-tax impact of those items was $1.5 billion.
Ford Motor Co. beat Wall Street's expectations in the second quarter as it chalked up a record profit in North America and made money in Europe for the first time in three years.
But things will get leaner in the second half as Ford closes one of its pickup truck plants to prepare for its new aluminum-sided F-150 and spends more on materials and advertising.
Ford's net income rose 6 percent to $1.3 billion in the April-June period. The profit, of 32 cents per share, was up from 30 cents per share in the same period a year ago.
Excluding separation costs in Europe and a $329 million impairment charge for its money-losing joint venture in Russia, Ford earned 40 cents per share. That beat analysts' forecast of 36 cents, according to FactSet.
Ford's revenue fell 1 percent to $37.4 billion, ahead of analysts' expectation of $36.2 billion. Worldwide sales fell 1 percent to nearly 1.7 million.
Ford reported its highest-ever pretax profit of $2.4 billion in North America despite lower sales. Chief Financial Officer Bob Shanks said the company saw lower costs for materials and also saw increases in sales of parts and accessories.
Ford plans to close its Dearborn truck plant for eight weeks beginning in August. The new F-150, with aluminum sides that shave 700 pounds off the truck's weight, is scheduled to go on sale in the fourth quarter.
In Europe, the company made $14 million. Sales were down slightly.
In Asia, Ford's profit jumped 22 percent to $159 million, largely due to strong sales in China. Ford lost $295 million in South America.