Due partly to its improved products, Ford Motor Co. posted its highest annual net income in more than a decade, with a $6.56 billion profit for 2010. The 2010 quarterly net income was $190 million against $886 million in 2009.
Excluding special charges but including a $960 million charge tied to a payment to convertible debt investors, Ford earned $1.2 billion. The payment helped cut the company’s automotive debt by more than $1.9 billion.
CEO Alan Mulally said the company’s 2010 results exceeded its expectations and accelerated its transition from fixing the business fundamentals to delivering profitable growth for all. Ford is increasing its first-quarter North American production plan by 15,000 units to 650,000.
Due to lower market share and higher costs, European operations reported a $51 million loss, thus failing to meet the company's expectations. In 2009, the company ended three years of losses by earning $2.72 billion.
The results marked the second straight annual profit for Mulally, who has dropped brands and put a global focus on the Ford marque while establishing it as a leader in in-car information technology. Ford plans to deliver “continued improvement in pre-tax operating profit and automotive operating-related cash flow” in 2011.