Ford posts better-than-expected Q3 profit

On the back of higher vehicle prices and lower costs in North America

Ford Motor Co on Tuesday reported a better-than-expected profit for the third quarter on the strength of higher vehicle prices and lower costs in North America.

The second-largest U.S. automaker reported an operating profit of $2.2 billion, or 40 cents per share, up from $1.9 billion or 34 cents per share a year earlier.

The average Wall Street estimate called for Ford to make 30 cents per share, according to Thomson Reuters .

Third quarter net income was $1.63 billion or 41 cents a share. Revenue fell 3 percent to $32.1 billion, better than the $30.9 billion expected by analysts.

It was the best third quarter ever for the automaker. In North America, Ford made $2.3 billion, the third straight quarter the automaker made more than $2 billion in the market.

Ford lost $468 million in Europe, where industry sales have fallen to their lowest level in nearly 20 years. Ford expects to lose at least $3 billion in Europe over the next two years.