Ford reports an unexpected profit

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Ford unexpectedly swung back into profit in the first three months of 2008 following its hefty 2007 losses.

The carmaker reported net income of $100m (£51m) compared with a $282m loss for the same period last year, which contributed to a 2007 loss of $2.7bn.

But Ford still predicted that it would make a loss for the whole of 2008 as its business in North America continues to be weak.

Losses in its home market were offset by gains in Europe and South America.

"The remainder of 2008 will be a challenge but we are cautiously optimistic despite the external challenges," said Ford's chief executive Alan Mulally.

"Our plan is working," he added.

Ford is in the middle of a far-reaching restructuring that has included the sale of Jaguar and Land Rover to India's Tata Motors, although that sale is not accounted for in these results.

It has also been trying to reduce staff numbers and has announced that its early retirement and buyout offers had been accepted by 4,200 workers.