Ford profit beats forecast on record North America margins

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By Deepa Seetharaman and Ben KlaymanPublished October 30, 2012ReutersDETROIT –  Ford Motor Co posted a third-quarter profit that trounced Wall Street forecasts on Tuesday, driven by higher vehicle prices and record profit margins of 12 percent in North America.Worldwide, Ford earned $800 million more through price increases than it did last year. Half of that jump came from North America, where Ford has earned more than $2 billion and posted margins over 10 percent for three quarters in a row.The No. 2 U.S. automaker's strength in North America offset the effects of the sharp industry downturn in Europe, where Ford expects to lose at least $3 billion over the next two years, and helped make up for its lagging position in China and other growth markets.In the third quarter, Ford posted an overall pretax operating profit of $2.2 billion, or 40 cents per share, beating analysts' average estimate of 30 cents per share, according to Thomson Reuters I/B/E/S.In North America, Ford earned $2.3 billion with a 12 percent operating margin. "Twelve percent segment margins is just insane," said Jefferies analyst Peter Nesvold, who has a "buy" rating on Ford.But operating margins in North America are unlikely to be as high in the fourth quarter because of higher spending in areas like engineering and advertising, Chief Financial Officer Bob Shanks warned during a call with analysts and reporters.Higher pension costs and fewer cost deductions will pressure North American results next year, he added. Ford must also take steps to boost quality, especially after tumbling to the bottom of a key reliability survey this week.Still, Ford expects North America will continue to "carry the load" as operations in Europe, Asia and South America find their footing and generate consistent profit, Shanks said.In the third quarter, Ford lost $468 million in Europe. It earned $9 million in South America. It also earned $45 million in Asia Pacific and Africa, the first profit for those regions since the second quarter of 2011.

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UBS to Cut 10,000 Jobs in Major Overhaul

6:26 p.m. | Updated 
LONDON — UBS, the Swiss bank, announced plans on Tuesday to eliminate up to 10,000 jobs and cut costs in a major overhaul that will squeeze its earnings in the short term.Like many European banks, UBS is dealing with the effects of the sovereign debt crisis and the sluggish European economy. With profits eroding, the Swiss firm wants to reduce its riskier operations and focus on its profitable wealth management group.A year ago, the bank’s chief executive, Sergio P. Ermotti, first announced efforts to pare back the firm’s risky trading activity and focus on the wealth management business. Mr. Ermotti said on Tuesday that stricter regulatory capital requirements and continued uncertainty in the global economy had pushed the bank, which is based in Zurich, to hasten its restructuring plans.“The regulatory environment has become tougher and more demanding,” Mr. Ermotti said in an interview. “Parts of the investment banking universe are just no longer commercially sustainable.”http://dealbook.nytimes.com/2012/10/30/ubs-to-cut-10000-jobs-in-major-overhaul/

Queens Community Ravaged by ‘New York’s Katrina’

A general view of dozens of destroyed homes and vehicles after a fire caused by Hurricane Sandy, in Breezy Point, Queens, New York City, on Oct. 30, 2012.Burned-out foundations and blown- away walls are all that’s left of some of the houses in the oceanside community of Breezy Point in New York’s Queens borough.1:18Oct. 30 Bloomberg) -- Bloomberg's Alix Steel reports on the lack of power, the state of the subway system and the flooding in downtown Manhattan after Hurricane Sandy. She speaks on Bloomberg Television’s "In The Loop." (Source: Bloomberg)Fire Commissioner Sal Cassano said 111 homes were destroyed and 20 more damaged in Breezy Point in a fire that followed widespread flooding in the wake of Hurricane Sandy.“The damage was massive and widespread,” said Dennis Dier, director of security for Breezy Point. “This is New York’s Katrina.”About 85 percent of the community’s homes were empty at the time, as residents heeded calls to evacuate the peninsula, Dier said. He and Mooney said they didn’t know of any fatalities there. The area’s congressman was among those who lost their homes.In nearby Belle Harbor, a muddy stripe five feet off the ground across the still-intact garages showed why city trucks had difficulty getting to the fires.“There was so much water, four or five feet, that the apparatus couldn’t respond through it,” said Battalion Chief Jim McNally.

Trucks Stuck

Commercial buildings in the area of 116th Street also burned, as fire trucks from Brooklyn found it impossible to get through the water, McNally said. A dozen houses burned down on 130th Street and Newport Avenue, he said.The fires broke out in homes near Oceanside Avenue and Irving Walk and were mostly under control by 6:45 a.m., said Deputy Assistant Chief John Mooney, who estimated that more than 200 fire-fighters were battling the flames at one point.The department said the cause of the blaze was under investigation.“The place was supposed to be evacuated so hopefully it was,” said Mooney.John Whelan, 49, who decided to ride out the storm in his home, fled to a neighbor’s when the water was waist-deep, then watched from a second-story window. Flames were “jumping from house to house,” he said.A water main went out, making it impossible for volunteers to tap the hydrants, said Dier. Eventually, city trucks were able to draft ocean water to bring the flames under control, he said.

‘Terrible Fire’

http://www.bloomberg.com/news/2012-10-30/queens-community-ravaged-by-new-york-s-katrina-.html