DEARBORN, Mich. — In what was one of the most tumultuous and unprecedented years in automotive history that saw the bankruptcy of its domestic rivals, Ford recorded positive full-year net income for the first time in four years and closed 2009 on a high note with a strongly profitable fourth quarter.
What's more, Ford executives expect to see another profitable year in 2010.
The automaker also surpassed its annual automotive structural cost-cutting goal, slicing these expenses by $5.1 billion, a significant upswing from its $4 billion target.
Specifically, Ford's full-year net income was roughly $2.7 billion, compared to a loss of approximately $14.8 billion the prior year. Helping to push the automaker to its first full-year positive net income since 2005 were favorable net pricing, structural cost reductions, net gains on debt reduction action and healthy results from Ford Credit, according to officials.
The company's pre-tax operating profit — excluding special items — was $454 million, versus a loss of $6.85 billion in 2008.
Revenue for the automaker was $118.3 billion, compared to $138.1 million a year ago.
Ford Credit posted full-year pre-tax operating profit of just over $1.98 billion, compared to a loss of $473 million in 2008.
"While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford and the strongest proof yet that our One Ford plan is working and that we are forging a path toward profitable growth by working together as one team, leveraging our global scale," explained Alan Mulally, Ford president and chief executive officer.
"In every part of the world, we are providing customers with great products, building a stronger business and contributing to a better world," he continued. "Our progress has helped us gain market share in most of our major markets."
For the fourth quarter, Ford posted net income of $868 million, an increase of more than $6.8 billion increase from the same period of 2008.
With the exclusion of special items, Ford's pre-tax operating profits were nearly $1.8 billion, compared to a loss of more than $3.7 billion the prior year.
Quarterly revenue was $35.4 billion, a gain of $6.4 billion.
Looking forward to the rest of 2010, Ford said it expects full-year profitability on a pre-tax basis, excluding special items.
"We are more convinced than ever that Ford has the right plan to lead us through the near-term economic and external operating pressures and continue to deliver profitable growth," Mulally shared.
"The entire extended Ford team is absolutely committed to building on our progress and working together as a lean global enterprise focused on automotive leadership and delivering products with the best quality, fuel efficiency, safety, smart design and value around the world," he added.