Countrywide Financial reports 3Q loss of $1.2B on mortgage woes, expects profits in 4Q, 2008

The largest U.S. mortgage lender, Countrywide Financial Corp. lost $1.2 billion (€830 million) in the third quarter amid the country's housing woes, but its shares soared it said it expects to be profitable this quarter and next year.

It was Countrywide's first quarterly loss in 25 years.

But the Calabasas, California-based company said Friday it will be profitable in the fourth quarter and in 2008, as it restructures its business to take advantage of the current market.

"We continue to be bullish about the longterm prospects of both Countrywide and our industry," Chairman and Chief Executive Angelo Mozilo said during a conference call with Wall Street analysts.