Ford Motor Co just announced it raised its full-year global profit forecast because its European outlook is more positive and stronger overseas demand led to better-than-expected third-quarter results.
The No. 2 U.S. automaker now predicts its 2013 pretax profit would be higher than last year’s $8 billion and losses in Europe to fall below the 2012 figure. Chief Financial Officer Bob Shanks said Ford thinks the European unit could be in the black 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 US plan that led to Ford’s North American great results. Executives had until now predicted a return to positive results in Europe by mid-decade. Ford’s third-quarter net income declined 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 the European division. Ford said previously its global profit would be the same as in 2012 and losses in Europe would be of around $1.8 billion.