Ford Doubles Profit in 2010

Will pay profit sharing to 40,600 eligible U.S. hourly employees, with the average amount expected to be about $5,000

Ford said on Jan. 28 that its annual profit doubled in 2010 to its highest earnings in more than a decade. The company reported net income of $6.6 billion, up 135% from 2009.

"This was Ford's highest net income in more than 10 years, as strong products and new investments fueled improvements in all of the company's business operations around the world," the Dearborn, Michigan-based automaker said.

Ford reported its seventh consecutive quarterly profit, despite a large charge related to paying down debt. The company took a $960 million charge in the October-December period for actions that reduced outstanding automotive debt by more than $1.9 billion. Ford said for all of 2010 it had slashed automotive debt by $14.5 billion, or 43%, as it sought to strengthen its balance sheet.

Fourth-quarter profit fell to $190 million, from $886 million in the same period in 2009. In the fourth quarter, sales came in at $32.5 billion.

Worldwide revenue for the full year rose 4% to $120.9 billion.

"Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all," said CEO Alan Mulally. "We are investing in an unprecedented amount of products, technology and growth in all regions of the world."

As a result of the banner year, the company said, it will pay profit sharing to approximately 40,600 eligible U.S. hourly employees, with the average amount expected to be about $5,000.

Copyright Agence France-Presse, 2011

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