Ford Raises ’04 Forecast, Says It Will Cut 1,150 Jobs at Jaguar

Ford Motor Co. raised its third-quarter and full-year earnings forecast for 2004 on Friday, citing continued strong performance at its financial services arm even as the company’s car business struggles in the U.S.

The news came on the same day Ford announced about 1,150 job cuts in England to streamline its Jaguar division, where weak sales have failed to offset spending on new products and other parts of the business.

Ford also said Jaguar would exit Formula One racing at the end of 2004 so the brand can focus on its core automotive business. The Formula One racing division is for sale, the company said.

On the New York Stock Exchange, shares of Ford rose 27 cents to $14.22.

Ford raised its third-quarter earnings outlook by 10 cents a share to a range of 10 to 15 cents a share from continuing operations, excluding special items.

Analysts polled by Thomson First Call forecast earnings of 10 cents a share for the quarter.

Ford said full-year earnings would be in the range of $1.90 to $2 a share, compared with previous forecasts of $1.80 to $1.90. Those estimates also are from continuing operations and exclude special items.

Wall Street analysts were expecting earnings of $1.99 a share.

In the April-to-June period, Ford Motor Credit reported net income of $897 million, up $496 million from a year earlier, accounting for the bulk of Ford’s $1.2-billion profit.

Ford said the job cuts in England and its decision to cease Formula One operations would result in pretax charges of about $450 million -- about $375 million this year and the remainder in 2005.