Global markets have been the salvation of American manufacturers this year. Is there hope for Detroit's troubled automakers as well?

Believe, says Ford Motor.

Propelled by strong earnings growth in South America and Europe, Ford swung to a profit of $100 million, or 5 cents per share, in its first quarter, from a loss of $282 million, or 15 cents per share, in the quarter a year ago. Analysts had been expecting a loss of 16 cents per share.

"The results of this quarter are encouraging, particularly our outstanding performance in Europe and South America," Alan Mulally, Ford's chief executive said. "In the past several years, we have substantially restructured these businesses. We believe this is an indication that our efforts to leverage Ford's global assets across the world will bear fruit."

In its core North American automotive market, Ford narrowed its pretax loss to $45 million from a loss of $613 million a year ago. Ford attributed the narrowing to cost reductions of $1.2 billion.

Ford has been aggressively cutting costs in the last two years, halting production at factories and shedding more than 46,000 jobs in North America. A new contract reached with the United Automobile Workers Union last fall has given the automaker greater opportunity to offer buyouts to factory workers. More than 30,000 workers have taken up the offers.

But Ford also said that its latest round only got 4,200 workers to take up offers, fewer than its targeted number.

And Ford continues to see sales in the United States fall. Not only is it losing market share to rivals like Toyota Motor, but also overall consumer spending has weakened as Americans worry about their jobs and the values of their homes.

"We expect the consumer environment to remain weak and Ford to continue to burn cash this year," said Eric Selle, an analyst with J. P. Morgan Chase, in a report released earlier this week, the Detroit News noted.

Markets outside North America told a more positive story.

In South America, Ford's pretax profit more than doubled, to $257 million.  Pretax profit in Europe surged to $739 million from $219 million in the quarter a year ago. The European results exclude Jaguar and Land Rover, which Ford is selling to Tata Motors of India.