Ford Motor Co just announced it boosted its full-year global profit outlook as its European picture brightened and stronger overseas demand sparked better-than-expected third-quarter results.
The No. 2 U.S. automaker now expects 2013 pretax profit to top last year’s $8 billion and losses in Europe to be less than they were in 2012. Chief Financial Officer Bob Shanks said Ford sees the European unit being profitable in 2015.
“The team is actually doing a better job, even than what we had expected in terms of driving forward this transformation plan” in Europe, Shanks said on a conference call. “This still leaves us firmly on track, maybe more firmly on track, to a profit, not breakeven, but a profit by 2015.”
Ford’s ongoing overhaul in Europe has borrowed heavily from Chief Executive Alan Mulally’s strategy that led to Ford’s North American renaissance. Executives had forecast a return to breakeven in Europe by mid-decade.
Ford’s third-quarter net income fell by a little more than one-fifth to $1.27 billion, or 31 cents per share, due to nearly $500 million in special charges, including $250 million spent on restructuring Europe.
Ford said previously its global profit would be equal to that of 2012 and losses in Europe would be about $1.8 billion.
) - Friday, October 25th, 2013 - filed under Ford
, Sales Reports
. Image credit: .
Discuss: Ford is optimistic and sees European profit by 2015