NEW YORK (CNN/Money) - Ford Motor Co. raised its third quarter and full-year earnings guidance Friday -- but also announced plans to close a U.K. plant that builds its luxury Jaguar sports car, resulting in 1,150 job cuts.

The company said it now expects to earn 10 to 15 cents a share in the third quarter, excluding special items, up from its earlier guidance of breakeven to 5 cents a share in the period. The company earned 15 cents a share in the year-ago period.

Analysts surveyed by earnings tracker First Call were ahead of the company's earlier guidance, forecasting earnings of 10 cents a share. The analysts had a range of estimates from breakeven to 17 cents a share.

The 10-cent-a-share improvement in third-quarter guidance also led the company to raise its full-year earnings target by that amount. It said it now expects to earn between $1.90 to $2.00 a share, excluding special items, up from $1.14 a share it earned in 2003. First Call's forecast already stood at $1.99 for the full year, with a range of estimates from $1.81 to $2.27.

The company said the improvement primarily reflects continued strong performance at Ford Credit and improved cost performance in its auto operations.

Ford also said it would close its final assembly operations at the Browns Lane, England, plant by the end of next year and cut its projected 2004 production of Jaguars by 15,000 vehicles. The plant closing will lead to 1,150 job cuts.

It also plans to exit from Formula One racing activities, including the sale of those operations.

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"Decisive action was needed to get Jaguar back on track and to ensure a viable future," said a statement from Mark Fields, the head of Ford Europe as well as its Premier Auto Group. "Despite the actions taken by the company's management over the past few years and despite the fact

Jaguar is again the highest rated European brand on product quality, Jaguar is back in a serious loss-making position."

"We have faced and tackled the fundamental reality, that Jaguar simply cannot support three assembly plants with annual sales of 125,000 cars," he added.

The company said it plans to move ahead with plans for an all-aluminum XK sports car to be introduced to Jaguar showrooms in early 2006.