Friday, Jan. 29, 2010

Ford profitable in 2009

$2.7 billion gain reported

DEARBORN, Mich. -- 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 Chief Executive 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. Back in 2006, Ford was considered the weakest of the three domestic automakers.

Ford shares fell 14 cents, or 1 percent, to $11.41 Thursday 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 $14.6 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 of $35.4 billion 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.

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.

In other earnings news

Microsoft | Microsoft says its earnings in the most recent quarter jumped 60 percent, helped by a rebound in personal computer sales.

Microsoft Corp. said Thursday its net income for the fiscal second quarter that ended Dec. 31 rose to $6.7 billion, or 74 cents per share. Revenue increased 13 percent to $19 billion.

The latest version of Windows, called Windows 7, was released during the quarter. Revenue from the Windows business jumped 70 percent.

Amazon.com | Amazon.com says its fourth-quarter earnings skyrocketed 71 percent, as shoppers spent more than ever during the holiday season.

The Seattle-based Web retailer said Thursday that it earned $384 million, or 85 cents per share, in the quarter, compared with $225 million, or 52 cents per share, in the same period last year.

Kodak | Eastman Kodak Co., the remade picture-taking pioneer, broke a series of four straight quarterly losses with a $443 million profit in the last three months of 2009, sending its shares sharply higher.

Its results in the October-December period were lifted by consumer and commercial inkjet printer sales, leaner costs and big licensing gains from its rich array of digital-imaging inventions.

Airlines | Most major airlines aren't planning to grow much this year, even as their reservation systems show a rebound in business travel.

US Airways, based in Tempe, Ariz., lost $79 million loss in the quarter, compared with a loss of $543 million a year ago.

Alaska Air Group, the operator of Alaska Airlines and Horizon Air, posted a $24.1 million fourth-quarter profit compared to a loss of $75.2 million for the same period in 2008.

JetBlue, meanwhile, had a profit of $11 million in the fourth quarter, compared to a loss of $58 million in 2008.

Consumer goods | Two of the world's most familiar consumer products companies, Procter & Gamble and Colgate-Palmolive, say sales are improving for their toothpastes, soaps and other household items.

Colgate-Palmolive profit rose 27 percent and sales rose 11 percent last quarter, while P&G said sales were up 6 percent and growing.