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subject Ford Posts Profit But Loses Money in Cars
By Poornima Gupta DETROIT (Reuters) - Ford Motor Co. (F.N: Quote , Profile , Research ) on Tuesday reported a higher-than-expected quarterly profit as strength in its finance arm once again offset a loss in its automotive business. The profit came as the second-largest U.S. automaker continued to lose share in its key U.S. market. Sales of Ford cars and trucks in the United States fell 8.1 percent in September and 5.1 percent year to date. Ford said third-quarter net income was $266 million, or 15 cents a share, compared with a year-earlier loss of $25 million, or 1 cent a share. Excluding $64 million in charges, including $23 million for restructuring its Jaguar division, Ford said it earned 28 cents a share. On that basis, Wall Street analysts on average were expecting profit of 14 cents a share, according to Reuters Estimates. Prudential Equity Group analyst Michael Bruynesteyn said weak automotive results and a tepid forecast were likely to disappoint investors. We expect a negative reaction on the stock, he added. Shares of Ford were off 1.3 percent on Tuesday morning. The automaker raised its full-year earnings outlook slightly to $2.00 to $2.05 per share from a previous estimate of $1.90 to $2.00. Analysts expect the company to post about $2.03 per share for the full year, according to Reuters . The quarterly and annual estimates exclude the costs of the Jaguar actions and other special items. Last month, Ford said it was ending car production at a Jaguar plant in Britain and slashed 1,150 jobs, or 15 percent, of the money-losing division's work force. Earnings from both Ford and rival General Motors Corp. (GM.N: Quote , Profile , Research ) , which reported lower-than-expected results last week, show how much the two Detroit auto giants rely on their lending arms, while they cut costs amid a profit-eroding price war. GM lost money in cars and trucks last quarter for the first time since 1998, mainly due to mounting losses in Europe. Continued ...
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