Ford's Escape 4X4 has proved a hit

The US car maker earned $896m (�571m) during the first three months of this year, and reiterated its full-year earnings forecast of $1.2bn.

The result, Ford's third successive quarter of profits after recording a heavy loss a year earlier, is a rare bright spark in the otherwise gloomy US car industry.

Rival General Motors, for example, warned on Tuesday that it might not meet its 2003 earnings target because of the unsettled US economy.

Focused on cost-cuts

Ford attributed the results to strong sales of some of its models, especially the compact Focus, and the Escape four-wheel-drive.

The company has made an effort to jazz up its range in recent years, after earning a reputation for unexciting design during the 1980s and 1990s.

Overall, however, vehicle sales slowed slightly, and Ford's group cash flow was supported only by strong performances at subsidiaries such as its credit arm.

At least as important to the bottom line have been the sweeping cost-cuts set in train by chairman Bill Ford, the great-grandson of company founder Henry Ford.

During the first three months of the year, Ford cut $638m in costs from its automotive business, well above its target of $500m for the whole year.