Ford turns corner to recovery

The company CEO calls the automaker’s progress ‘pivotal.’

DEARBORN, Mich. (AP) — Defying economic conditions that sent its U.S. rivals into bankruptcy court, Ford Motor Co. clawed its way to a $2.7 billion profit in 2009 and expects to stay in the black in 2010. It was the automaker’s first annual profit in four years.

Ford’s full-year revenue of $118.3 billion fell 14 percent from 2008, but the Dearborn-based automaker benefited from $5.1 billion in cuts to manufacturing, engineering and advertising and a $1.3 billion profit at Ford Credit. It gained market share in North and South America and Europe despite the worst U.S. sales climate in 30 years. Share in Asia was flat.

Ford CEO Alan Mulally said 2009 was “pivotal” but Ford has work to do.

“Ford’s transformation remains a work in progress and is far from complete,” he said in a conference call with analysts and media. In 2006, Ford was considered the weakest of the three domestic automakers.

Ford shares fell 14 cents, or 1 percent, to $11.41 in early afternoon trading after Ford halted production of some full-sized commercial vehicles in China. The vehicles contain gas pedals built by the same company behind the accelerators in Toyota Motor Corp.’s recall. Mulally said Ford is still determining if there is a problem.

Ford’s 2009 net income was 86 cents per share. It lost a record $14.8 billion, or $6.50 per share, in 2008. Excluding special items, Ford’s earnings per share for the year were flat.

Ford made money in three of the four quarters last year. In the fourth quarter, it earned $868 million, or 25 cents per share, compared with a loss of $5.9 billion a year earlier. Quarterly revenue was up 22 percent.

For the quarter, Ford made 43 cents before special items. That surprised Wall Street, where analysts expected 26 cents per share.

Ford expects to match or beat last year’s U.S. market share of 15.3 percent, which was up 1.1 percentage points. It was Ford’s first U.S. market share increase since 1995.