Ford earnings fell in the second quarter largely due to restructuring costs in Europe and South America.

Net income for the April-through-June period fell 86% from a year ago to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion.

On average, analysts surveyed by FactSet expected adjusted earnings of 31 cents per share on revenue of $38.49 billion.

Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America.

He says Ford already is seeing an impact from its global fitness measures.

The automaker also says its results include a $181 million valuation loss on an investment in a software company.