DEARBORN, Mich. – Fords third-quarter profit eased 1 per cent to $1.63 billion as European losses swamped record North American profits.

Ford Motor Co. said Tuesday its per-share net income was 41 cents, unchanged from the July-September period a year earlier. Before special items, including severance payouts, it earned 40 cents, beating Wall Streets forecast of 30 cents, according to analysts polled by FactSet.

Fords revenue fell 3 per cent to $32.1 billion as vehicle sales dropped in Europe and South America. The company exceeded Wall Streets revenue forecast of $31.5 billion largely because of North America, wher revenue jumped 8 per cent to $19.5 billion thanks to higher pricing and strong sales of higher-margin trucks and SUVs.

Dearborn-based Ford earned a record $2.3 billion in North America. Chief Financial Officer Bob Shanks noted that this was the third quarter in a row that the company has made more than $2 billion in North America and reported an operating margin of 10 per cent or more. Fords North American operating margin was 12 per cent in the third quarter, up from 8.6 per cent a year earlier.

To me the story isnt just the results but the consistency of the results, he said.

The company lost $468 million in Europe, wher sales have fallen sharply because of the troubled economy. The company hopes to stem its losses by introducing a raft of new vehicles to Europe, including the iconic Mustang sports car. It also announced last week a plan to close three European factories by 2014, affecting 6,200 employees. But in the meantime, the company expects to lose more than $1.5 billion both this year and next year in Europe. It doesnt expect to return to profitability in the region until the middle of this decade.

Shanks said Ford is being hurt by its competitors aggressive incentive spending in Europe. Ford has raised its prices slightly in the region, which is helping its margins but hurting its sales. Fords European market share dropped to 7.8 per cent in the third quarter, down from 8.5 per cent a year ago.

Ford earned $45 million in its Asia Pacific region, reversing a loss from a year ago. Its the first profit in that region since the second quarter of 2011.

Shanks said a big investment in new plants and products for Asia is paying off. Ford reached its highest-ever market share in China in the third quarter thanks to strong sales of the new Focus, which went on sale in the spring. Ford controlled 3.6 per cent of the Chinese new-car market, up from 2.8 per cent a year ago.