Ford posts $638m second-quarter loss

DEARBORN, Michigan: Ford Motor Co, the only major US automaker to decline a federal bailout, posted a $638 million second-quarter loss that beat analysts' estimates after cutting costs and gaining domestic market share.

The deficit excluding costs that Ford considers one-time items was 21 cents a share, according to a statement. The loss on that basis was narrower than the 50-cent average of 12 analyst estimates compiled by Bloomberg. Ford reported net income of $2.26 billion, or 69 cents a share, on accounting gains related to reducing debt.

"Ford has done a good job managing expectations," said Erich Merkle, an independent auto analyst in Grand Rapids, Michigan, said before results were released today. "It would be difficult to comprehend how their financial situation wouldn't improve given positive results."