Ford Posts Profit for Quarter and Full Year

First full year profit since 2005

Ford Motor Co. reported on Jan. 28 net earnings of $868 million in the fourth quarter, enabling the company to show a $2.7 billion profit for all of 2009.

The fourth quarter profit marked a sharp rebound from a loss of $5.98 billion in the same period a year earlier, and the full-year result was a swing to profit from a loss of a whopping $14.76 billion in 2008.

Ford's fourth quarter revenue was $35.4 billion, up 22% from a year ago. Revenue for the full year was $118.3 billion, a decline of $19.8 billion from 2008.

The number two U.S. automaker, which posted its first full year of positive net income since 2005, said it expected to remain profitable in 2010 on an operating basis, marking a faster-than-expected turnaround after years of steep losses.

"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," Ford CEO Alan Mulally said.

"In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world. Our progress has helped us gain market share in most of our major markets."

The company said it now expects to be profitable for all of 2010 on a pre-tax basis excluding special items.

Ford, which imposed hefty cuts on employees during its massive restructuring, said the latest results would allow it to pay profit sharing to 43,000 U.S. hourly employees under a 2007 agreement with the United Auto Workers union. The average amount is expected to be approximately $450 per eligible employee.

Ford also noted that it would not provide executive performance bonuses, as previously announced, but that U.S. salaried employees will receive merit increases this year.

Copyright Agence France-Presse, 2010

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