Ford Motors reported a 41 per cent drop in its first-quarter earnings today, as the slowing US economy hit its profits.
The world's second-largest car maker has seen its prestige and market share hurt by last year's public scrutiny over deaths and injuries in rollovers of its popular Explorer sports utility vehicle.
Ford's US vehicle sales fell 16 per cent in the first quarter, reflecting the economic slowdown and flagging consumer confidence.
It said earnings dropped to $1.13 billion, or 60 cents per share in the first quarter, compared with earnings of $1.92 billion, or 90 cents per share, in the previous first quarter.
Despite the downturn, the results came in at the high end of Wall Street estimates. Industry analysts had been expecting earnings around 45 cents to 62 cents, with a consensus forecast of 54 cents, according to Thomson Financial/First Call.
Ford's revenues fell to $42.4 billion compared with $42.9 billion in the same quarter a year ago. Earnings from its core North American operations fell to $754 million, from $1.67 billion in the first quarter last year.