Ford's restructuring steps in Europe have included closing three factories and cutting 6,200 jobs.
On a visit to Detroit this month, Ford of Europe President Stephen Odell told reporters the European industry may have hit bottom. "We're not predicting any upturn yet, but there are certainly some good indications," he said. "Our prediction would be that we're at or close to the trough. We don't see any further decline at this point."
Ford's North American results marked the fifth time in the last six quarters with a pretax profit of $2 billion or more, and an operating margin of 10 percent or more.
Ford's performance has gotten a boost from strong U.S. sales of the Fusion mid-sized sedan and Escape compact crossover. Both received redesigns for the 2013 model year. Unexpectedly strong sales of pickups across the industry have also lifted Ford, whose F-series pickup is the best-selling vehicle in North America.
COO Mark Fields said capacity constraints may have slowed Ford's U.S. sales slightly so far this year: "We're getting a little tight on inventories of vehicles like the Fusion.
Did we leave a few sales on the table? Yeah probably."
But those constraints should ease as Ford adds a third crew in Kansas City for the F-150, and begins producing the Fusion in Flat Rock, Mich., he said.
In South America, Ford's operating profit jumped to $151 million from $5 million last year. The company's financial services operations, dominated by Ford Motor Credit, posted pretax operating profit of $451 million, up 1 percent.
Ford's U.S. market share rose by 0.8 percentage points in the first half to 16.5 percent, according to Automotive News Data Center. Market share for Chrysler grew by more than 0.1 point to 11.6 percent. GM raised its share by less than 0.1 point to almost 18.2 percent.
Optimism about the U.S. automakers' product renaissance and accelerating sales in their home market propelled Ford and GM shares this month to their highest since early 2011.
Ford's pensions were bolstered in the first half, Shanks said, helped by rising discount rates.
"We're seeing a material improvement as we look at it at the end of June," Shanks said of the funded status of Ford's pensions, which the company discloses only on an annual basis. "That's really meaningful because the rating agencies view that as just another form of debt. Our ability to really cut into that substantially is significant."
Bradford Wernle, Reuters and Bloomberg contributed to this report.