Ford reveals record profits as European arm improves The company, which ranks behind General Motors as the second largest car manufacturer in the US, grew profits by $426m to $2.6bn, surpassing analysts" forecasts. It also more than halved losses at its struggling European division, from $468m a year ago to $228m, following deep cost cutting, including the closure of several manufacturing plants. Ford closed its facilities in Southampton and Dagenham last July, axing more than 1250 jobs and ending more than a century of Ford production in the UK. It is due to shutter a third plant in Belgium by the end of next year, as its shifts European manufacturing to Turkey, where labour is cheaper. The restructuring cost Ford $250m in the third quarter, but the European division's recovery accelerated nevertheless. The company had said it European unit would break even by 2016, but chief financial officer Bob Shanks said it would now move into profit even sooner than that. The team is actually doing a better job, even than what we had expected in terms of driving forward this transformation plan. This still leaves us firmly on track, maybe more firmly on track, to a profit, not breakeven, but a profit by 2015," he said. Overall car sales may see "very, very modest growth" in Europe in the near term, he added. However, Ford's European recovery could hit a speed bump if there is a change in leadership at the business. Alan Mulally, its chief executive, has been tipped as a leading contender to replace Steve Ballmer at Microsoft, when he steps down before August next year. Mr Mulally refused to discuss whether he has been approached for the job, or whether he would be interested. Instead, he said repeatedly that he is "pleased" to work at Ford and that he would not comment on "speculation." Mr Ballmer said in August that he will step down as chief executive of the software giant by next summer.