Countrywide Financial Corp. posted its first loss in 25 years Friday but saw its shares soar nearly 17 percent when the lender projected a return to profitability as it cuts costs and regains traction.

Countrywide reported a loss for the third quarter of $1.2 billion (-$2.85 per share), compared with a profit of $648 million ($1.03) from the same period a year earlier. Analysts polled by Thomson Financial predicted a loss of $1.65 per share.

The Calabasas-based lender said it projects a fourth-quarter profit of 25 cents to 75 cents per share, which will also lead the way for a profitable 2008, with a 10 percent to 15 percent return on equity. It also said it has negotiated $18 billion of “highly reliable” new liquidity to keep its doors open.

The latest results reflected “unprecedented disruptions in the U.S. mortgage market and the global capital markets, as well as continued weakening in the housing market,” Countrywide’s Chief Executive Angelo Mozilo said in a statement.

Countrywide took a $1 billion write-down for loans and securities because of capital market disruptions but also set aside $934 million for credit losses, up 2,360 percent from $38 million the company had set aside the same period a year earlier. Countrywide also said earlier this week that it will help borrowers adjust or modify $16 billion worth of mortgages in order to prevent foreclosures.

The results were also stung by $57 million in restructuring charges related to the expected loss of 10,000 to 12,000 jobs, which the lender announced earlier this year. Countrywide also said that it expects $70 million to $90 million in additional charges, which should be reflected in the fourth quarter.

One of the lone bright sports for the company was its new auto insurance operations, which the company started last year and said generated $150 million in profit for the quarter.

The housing woes and lending squeeze are hardly the only obstacles impeding a recovery for the nation’s largest lender. There is also mounting pressure for Mozilo to step down as head of the company he built as shareholders have called into question certain stock sales he made this year that preceded large declines in share price. The Securities and Exchange Commission is currently investigating the stock sales to determine if Mozilo used any inside information prior to the sales. Mozilo has said he did no wrong.

Shares in Countrywide surged 16.2 percent to $15.20 in early trading Friday on the New York Stock Exchange. Shares have lost nearly 70 percent so far this year.