DETROIT — The Ford Motor Company earned $2.7 billion in 2009 and said Thursday that it now expected to be profitable in 2010 as well.þþThe profit for 2009, equal to 86 cents a share, was a swing of $17.5 billion from 2008, when the company lost $14.8 billion. It is Ford’s first full-year profit since 2005.þþThe company ended 2009 with $25.5 billion in cash reserves, nearly twice the $13.4 billion it had at the start of the year.þþIt also expects an operating profit in 2010, which is a year sooner than executives had previously said the company would become consistently profitable.þþ“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’s chief executive, Alan R. Mulally, said in a statement. “In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world.”þþIn the fourth quarter, Ford earned $868 million, or 25 cents a share, compared with a loss of $6 billion, or $2.51 a share, in the period of 2008.þþIt was profitable in every region, including North America for the second consecutive quarter. North America has been the greatest source of difficulty for all automakers, but it was Ford’s most profitable region in the fourth quarter, with pre-tax earnings of $707 million.þþFourth-quarter revenue was $35.4 billion, up $6.4 billion from a year ago. For all of 2009, revenue fell $19.8 billion, to $118.3 billion.þþThe full-year earnings means hourly employees will receive profit-sharing checks averaging $450, Ford said.þþFord happily separated itself from General Motors and Chrysler in 2009 by not taking government loans and filing for bankruptcy. That helped the company improve its reputation and win new customers. þþFord increased its market share in the United States for the first time since 1995, even as it raised profit margins by reducing customer discounts.þþLately, Ford has been a bright spot in an industry still beset by fairly dismal selling conditions. It won both the North American car and truck of the year awards at this month’s Detroit auto show. Shares of Ford surged to more than $12 this month, from a low of $1.50 in February 2009.þþFord is among the carmakers that analysts expect to benefit most from the troubles at Toyota, which has recalled 5.3 million vehicles since November and this week stopped selling eight models as it seeks replacement accelerator pedals.þ
Source: NY Times
