Ford Motor Company boosted its complete year earnings on Thursday, helped in part from the improved forecast for Europe and results that had been better than projected during the third quarter.
The second largest automaker in the U.S. now expects its profit before taxes to beat last years of $8 billion and its loss in Europe to narrow. Before, Ford has predicted its global profit for 2013 and losses in Europe would be the same as levels from 2012.
Ford saw its prices of vehicles stabilize throughout Europe in the third quarter, Bob Shanks the CFO said, adding the improvement reflected the progress in its restructuring in Europe.
Sales in the auto industry in Europe will begin to experience a modest growth over the near term, said Shanks.
The overhaul in Europe by Ford is modeled after the One Ford strategy of Alan Mulally the CEO at Ford. The strategy helped the automaker reverse its heavy losses throughout North America, where the bulk of its profits are made.
During the third quarter, the U.S. automaker earned a profit in its three regions overseas: Africa and Asia Pacific, South America and Europe, for the first time outside its North America region in over two years.
Net income during the third quarter was down by over one-fifth to end the month at $1.27 billion or the equivalent of 31 cents a share. That was due mainly to $500 million of special charges, which included $250 million on European restricting.
Revenue for the third quarter was up 12% to end at $36 billion. However, excluding its one-time items, the automaker reported its adjusted earnings to be 45 cents a share. It was better than the estimated 38 cents that economists had predicted.
North American profit before taxes for Ford was $2.3 billion little changed over last year’s figure.
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