Link (http://news.yahoo.com/s/ap/20100128/ap_on_bi_ge/us_earns_ford)

DEARBORN, Mich. – Ford, the only U.S. automaker to avoid bankruptcy court, 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 nearly 20 percent from 2008, but the Dearborn-based automaker benefited from cost-cutting, a $696 million profit in its credit arm and popular cars and trucks like the Ford Fusion midsize sedan and Ford Escape small SUV. It gained market share in North and South America and Europe, despite the worst U.S. sales climate in 30 years.

"While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford," Ford CEO Alan Mulally said in a statement.

Ford shares rose 32 cents, or nearly 3 percent, to $11.87 in premarket trading.

Ford's 2009 net income of 86 cents per share showed a significant improvement from the year before, when it lost a record $14.6 billion. Before severance payments and retiree health care charges, Ford made 43 cents per share.

The profit surprised Wall Street, where analysts expected an annual loss of 31 cents.

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. Ford's quarterly revenue of $35.4 billion was up 22 percent from a year earlier.

Ford was able to predict a profit this year because of small signs of economic growth, lower costs and its ability to get higher prices for its vehicles, said Chief Financial Officer Lewis Booth. Previously, Ford had only forecast that it would be "solidly profitable" in 2011.

Hooray for the hope that the American economy isn't completely crap hitting a fan. If Ford can make even a small profit with all of that debt still, GM should be able to do so as well. We'll see if the UAW can keep their hands out of the pot. A $2.9 billion profit hardly warrants the UAW wages/benefits to be increased since Ford has lost so much money in the last few years and the economy is still floundering like a codfish on land.

WOOHOO! Now there's TWO profitable American car companies.

-SPARKZZ

WOOHOO! Now there's TWO profitable American car companies.

-SPARKZZ

You mean Ford and Toyota???

You mean Ford and Toyota???

Ha ha, he means Ford and a more electric auto maker than Toyota.

Here's an interesting part of the article about Ford posted on finance.yahoo.com

http://finance.yahoo.com/news/Ford-earns-27B-in-2009-first-apf-2363384737.html?x=0&sec=topStories&pos=5&asset=&ccode=


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.

Mulally said Ford could benefit from safety-related recalls at Toyota. On Thursday, Ford pledged to give $1,000 to current Toyota, Lexus, Scion, Honda or Acura drivers who trade in vehicles or have leases expiring by June 30. The trades must be 1995 vehicles or newer.

"With a void right now and people needing vehicles, there's going to be even more interest in Ford," he said.

The automaker finished the year with $34.3 billion in debt, up $7.4 billion from Sept. 30. The company took on $7 billion in debt it owes a retiree health care trust fund run by the United Auto Workers union. It puts Ford at a disadvantage to GM and Chrysler Group, which were able to shed debt in bankruptcy court.

Booth said the company has "an uncompetitive balance sheet" and will work on cutting debt this year, but he wouldn't say what steps it will take.

Everyone is cheering about their "profit", but overall, their health care trust fund is still burying any puny $2.7 billion profit they can earn.

Ford wasn't able to restructure their long-term liabilities like GM and Chrysler, so they will eventually go bankrupt. Last year was the good year to file for bankruptcy, as everyone was scared of a depression, but now no one is, so there won't be any concessions like GM and Chrysler got.

It sounds like they are hoping they can get a similar deal as GM and Chrysler got without taking it to court. Everyone with a stake in Ford knows its better for all in the long run if they can just do it behind the scenes. We'll see if that happens though because the UAW has already made a few concessions and I think in their mind they've done enough. It's tough to say which hurt GM and Chrysler more between taking tax dollars, or their Ch. 11 filing. I think probably the former.

The UAW is already crying about getting their share even though they are getting a profit check. They WILL finish Ford off.

They cry equality in regards to the salaried employees had 401K matching and merit raises reinstated and they haven't got that. Yet, the hourly have benefits that are FAR better than the salaried ranks. Like a $10-20 co-pay vs a $3000+ deductible. How is that fair??? Salaried employees have been getting the shortest stick for a LONG time. UAW hasn't given up crap. Sacrafice? my A$$..

The UAW is already crying about getting their share even though they are getting a profit check. They WILL finish Ford off.

They cry equality in regards to the salaried employees had 401K matching and merit raises reinstated and they haven't got that. Yet, the hourly have benefits that are FAR better than the salaried ranks. Like a $10-20 co-pay vs a $3000+ deductible. How is that fair??? Salaried employees have been getting the shortest stick for a LONG time. UAW hasn't given up crap. Sacrafice? my A$$..+1000
:mad:
WOT