Ford surprises with $1B profit; sees profit in ’11

Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a “solidly profitable” 2011. The automaker says earnings were fueled by U.S. market-share gains, cost cuts and the “Cash for Clunkers program,” which drew flocks of buyers to showrooms this summer. The latest results signal that Ford’s turnaround is on more solid ground. The company lost more than $14.6 billion last year and hasn’t posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments. Dearborn, Mich.-based Ford reported third-quarter net income of $997 million, or 29 cents per share. Previously, the automaker said it would break even or better. Its key North American car and truck division posted a pretax profit of $357 million, the company’s first quarter in the black since early 2005. Ford cited higher pricing, lower material costs and increased market share for the improvement. Excluding one-time items, Ford earned 26 cents per share, blowing away analysts’ expectations of a loss of 12 cents.