Countrywide Financial Corp. lost $1.2 billion in the third quarter

LOS ANGELES (AP) — Countrywide Financial Corp. lost $1.2 billion in the third quarter, but its shares soared Friday after the nation’s largest mortgage lender said it expects to be profitable this quarter and next year.

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

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

Shares jumped $2.13, or 16.3 percent, to $15.21 in morning trading after initially rising as high as $16.30. The stock has ranged $12.07 and $45.26 the past 52 weeks.

The loss for the third-quarter came as mortgage market woes forced Countrywide to set aside millions in loan-loss provisions and writedowns, and the lender originated fewer loans.

Countrywide’s loss amounted to $2.85 per share, for the July-September period compared with a profit of $647.6 million, or $1.03 per share, a year ago.