Ford Motor Co. posted a fourth-quarter profit today and swung to a profit for the year with the help of accounting gains while forecasting an operating profit for 2010. Ford had previously said it would not be “solidly profitable'' until 2011.


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The results showed continued progress in CEO Alan Mulally's recovery efforts in the face of the weakest U.S. sales in 27 years. Ford was the only large U.S. automaker not to reorganize under a U.S. government-supported bankruptcy in 2009. “While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale,” Mulally said in a statement. Ford reported fourth-quarter net income of $868 million compared with a loss of $5.9 billion a year earlier. Ford snapped a 3-year streak of losses by recording a net profit of $2.7 billion for 2009 compared with a loss of $14.8 billion in 2008. Last year's results were aided by gains from debt-reduction efforts and other items. Ford's operating gain, after taxes, for the fourth quarter was $1.6 billion compared with a loss of $3.3 billion a year ago. For the year, Ford's operating profit was $8 million compared with a loss of $7.3 billion a year earlier. Ford finished the year with $25.5 billion in automotive gross cash and $34.3 billion in automotive debt. Ford said it now expects to be profitable for full year 2010 on a pre-tax basis excluding special items, for North America, with positive operating-related cash flow. Mulally had previously said the No. 2 U.S. automaker would be “solidly profitable” in 2011. Ford posted losses totaling $30 billion from 2006 through 2008, including a record $14.7 billion net loss in 2008. Ford is also raising production in the first quarter in North America by 20,000 units to 570,000 units from previously announced 550,000 units. Ford's results come as rival Toyota Motor Corp. is mired in a crisis over faulty accelerator pedals that have led to a massive recall of top-selling vehicles and the temporary suspension of production and sales. Ford shares have reflected a surge in investor expectations. The stock has jumped nearly six-fold in a year from under $2 to $11.55 on Wednesday.

Ford posts 4Q profit , moves up plan to be ‘solidly profitable'

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