The No. 2 U.S. automaker now expects 2013 pretax profit to top last year's $8 billion and sees losing less money in Europe than in 2012. Chief Financial Officer Bob Shanks said Ford's vehicle prices stabilized in Europe in the third quarter and overall auto sales in Europe may see "very, very modest growth" in the near term. Ford's overhaul of Europe is modeled after Chief Executive Alan Mulally's "One Ford" strategy that helped the company reverse heavy losses in North America. Under the plan, Ford expects to return to profitability in Europe by mid-decade. Ford narrowed its losses in Europe to $228 million in the quarter from $468 million a year ago. The performance trounced Wall Street estimates of losses exceeding $400 million. "Europe losses have shrunk significantly, excluding restructuring, raising the possibility of a near-breakeven result in 2014," Morgan Stanley analyst Adam Jonas said in a research note. Jonas has an "overweight" rating on Ford shares. Excluding the one-time items, Ford reported adjusted earnings of 45 cents per share, 7 cents better than the average estimate of analysts polled by Thomson Reuters I/B/E/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. In the quarter, Ford posted a combined profit in its three overseas regions-- Asia Pacific and Africa, Europe and South America - the first time Ford did so in more than two years. In South America, the automaker had a pretax profit of $159 million, up sharply from $9 million last year. In Asia Pacific and Africa, Ford earned $126 million, nearly triple last year. Ford reported a North American pretax profit of $2.3 billion in the quarter, little changed from last year. "They seem to continue to execute," said Gary Bradshaw, a portfolio manager with Hodges Capital Management in Dallas, Texas, which owns about 300,000 Ford shares. "We're all driving 11-year-old cars. We've got to upgrade and I think the economy gets better." Previously, Ford said its global profit would be equal to that of last year and losses in Europe would be about $1.8 billion. During the first nine months of 2013, Ford lost $1 billion in Europe and spent $400 million to restructure those operations. Ford closed two U.K. factories in July and plans to shutter its plant in Genk, Belgium, by the end of next year. (Reuters)