WSJ Online / Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved / By Jeff Bennett


DETROITFord Motor Co. swung to its first annual profit since 2005, helping the auto maker further distance itself from its troubled U.S. rivals while stoking consumer buzz about the company and its vehicles.

Net income for the fourth-quarter was $868 million, or 25 cents a share compared with a loss of $5.98 billion, or $2.51 a share. Excluding items, the company reported a 43-cent earnings-per-share profit, exceeding the Thomson Reuters analyst estimate of 26 cents a share. The auto maker's fourth-quarter revenue was $35.4 billion.

Ford's full-year 2009 profit was $2.7 billion, compared with a loss of $14.7 billion the previous year. Revenue for the full-year revenue was $118.3 billion.

The results give Chief Executive Alan Mulally bragging rights on his turnaround plan since he wasn't anticipating an annual profit until 2011. Mr. Mulally has worked internally to improve production, slash jobs, sell off brands and unite the company since his arrival in 2006.

The second-largest U.S.-based auto maker must now weather a fragile automotive market especially in Europe, where the loss of incentive programs is expected to reduce overall industry sales by as much as 2 million vehicles this year.

Meanwhile, the company will have to shrink its total debt which stood at $36.8 billion at the end of the year, almost twice the size of General Motors Co. which, along with Chrysler Group LLC, filed for bankruptcy protection earlier this year.

The Dearborn, Mich., auto maker increased its first-quarter production forecast, saying it will now build about 570,000 vehicles compared with its earlier estimate of 550,000.

Ford said it will pay profit sharing to about 43,000 U.S. hourly workers as part of its improved 2009 U.S. financial performance. The average amount will be about $450 per employee. The auto maker,however, will not pay salaried employees bonuses for 2009 although they are eligible for merit increases this year. The company also reinstated its matching 401(k) program on Jan. 1.

Ford said it will pay profit sharing to about 43,000 U.S. hourly workers as part of its improved 2009 U.S. financial performance. The average amount will be about $450 per employee. The auto maker,however, will not pay salaried employees bonuses for 2009 although they are eligible for merit increases this year. The company also reinstated its matching 401(k) program on Jan. 1.

gorocks99 wrote: I'm gonna say this is all due to Chevy having douchey Howie Long commercials.