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Ford of Europe reports big profits in the second quarter, despite a steady decline in sales

Ford of Europe has reported a big rise in quarterly profits, despite a steady decline in sales during the same period.

The division made a second-quarter pre-tax operating profit of $322 million (£209.5 million), up from $57 million (£37 million) during the same period last year. The result is well above the $107 million (£69.6 million) profit the European unit made in the first quarter.

However, Ford of Europe's sales fell for the third-consecutive month in June, down 8.3 per cent to 118,800 units.

The increase against 2009 has come from greater market stability; Ford of Europe said it had spent much less rescuing suppliers this year. In 2009, car makers were forced to bailout or, in some cases, buy suppliers to ensure that parts deliveries would not be interrupted.

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