DETROIT, United States (AFP) - The Ford Motor Company surprised analysts by offering a brighter outlook for the the third quarter and 2004 earnings, saying its luxury nameplates are showing signs of life.
The US auto giant said it will rake in better-than-expected results in the quarter and for the full year, after excluding special charges to reorganize its Jaguar operations in Britain.
Ford's moves will include job cuts at Jaguar and ending its Formula One sponsorship.
The company will take a 450 million dollar charge to cover the downsizing announced earlier Friday -- 375 million dollars of it this year, the remainder in 2005.
In a conference call with analysts, Ford chief financial officer Don LeClair said the moves should enable its premier automotive group, (PAG), which includes the luxury Jaguar brand, to attain breakeven in the fourth quarter before exceptional items.
The division posted a pretax loss of 362 million dollars in the second quarter, down from a pretax profit of 166 million in the same quarter a year ago.
At the same time, Ford hiked its third-quarter earnings guidance, citing the strength of its financial services division and its success in cutting costs out of its core automotive operations.
The world's number three automaker said it now expects to earn between 10 to 15 cents per share from operations in the third quarter, exclusive of charges -- an increase of 10 cents.
For the calendar year 2004, Ford now expects to earn 1.90 to two dollars per share, up from 1.80 to 1.90 dollars per share.