Ford posts profit of nearly $1 billion - washingtonpost.com

Ford posted a third-quarter profit on Monday of nearly $1 billion, its first quarterly profit in more than a year, beating Wall Street expectations. Its North American operation posted its first profits since 2005.

"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," Ford's president and chief executive, Alan Mulally, said in a statement. "While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger." Essentially, the company, the only major U.S. automaker to avoid bankruptcy this year, has pared its costs enough to offset the weak market.

The company said its third-quarter revenue was $30.9 billion, down $800 million from the same period a year ago, but it showed a profit by significantly reducing costs. Over the past three years, Ford has closed more than 10 plants and cut 45 percent of its workforce in its North American division. This quarter, Ford cut its automotive structural costs by $1 billion, largely by lowering manufacturing and engineering costs.

Ford said it now expects to be "solidly profitable" in 2011, with "positive operating-related cash flow."