(MENAFN- Arab News) Washington: us auto giant ford has posted a large decline in first-quarter profit as sales fell in its key north america market and costs rose for vehicle recalls.

the second-largest us automaker blamed bad winter weather in part for its disappointing performance in north america. other negative factors included an unfavorable exchange rate in south america.

'while similar factors could occur in the future it is unusual for items like these to occur in this magnitude in the same quarter" ford said in a statement.

net income was $989 million in the first three months of the year down 39 percent from $1.6 billion a year ago.

adjusted earnings of 25 cents per share came in six cents below wall street expectations.

revenue rose 0.8 percent to $35.9 billion beating estimates.

ford president and chief executive alan mulally who is expected to leave the company this year after a seven-year run said the automaker had a 'solid" quarter as it transitions into an ambitious program for the year that includes the launch of 23 new global vehicles.

'we are on track with our most aggressive product launch schedule in our history" said mulally.

mulally is widely regarded as helping to restore ford's luster steering the company clear of a government bailout during the 2008 financial crisis and overseeing impressive sales growth. earnings rose 26 percent in 2013 to $7.2 billion.

global auto sales volume rose six percent and revenue climbed one percent from the 2013 first quarter.

the dearborn michigan-based company said it scored continuing market-share gains in the asia-pacific region including a record share in china.

in north america ford's largest market wholesale auto sales fell two percent in volume and revenue declined five percent. pre-tax profit fell to $1.5 billion down $892 million from the year-ago record profit.

the lower results reflected higher costs of $500 million linked to weather-related charges and vehicle recalls.

south america pre-tax losses more than doubled to $510 million.

ford said it expects lower full-year earnings in north america and a wider loss in south america.

the asia pacific region swung into pre-tax profit of $291 million from a $28 million loss a year ago.

leading the growth was china the world's largest auto market where wholesale auto sales volume soared 45 percent. ford plans to introduce at least 15 new models in china this year including its luxury lincoln car. it has opened three new factories in the country since 2012 and four plants are under construction .

ford forecast the asia-pacific region would exceed 2013 profits this year.

the automaker shaved its loss in europe by almost half to $194 million as it restructures operations to reduce costs. ford confirmed it expects the region to become profitable in 2015.

ford confirmed its 2014 full-year outlook of pre-tax profit between $7 billion to $8 billion below its record $8.6 billion in 2013.

ford shares tumbled 3.2 percent to $15.80 on the new york stock exchange.

jpmorgan analyst ryan brinkman said that ford was stronger than the disappointing earnings number suggested.

'we believe when the dust settles investors will conclude that ford's underlying operations are performing well despite this being a 'transition year' on a record number of new product launches setting the company up for even better performance down the line" he said.