Ford Posts Profit in ‘03; Quarterly Loss Widens

Ford Motor Co.’s fourth-quarter net loss widened to $793 million, mostly because of expenses from revised terms of its spinoff of former parts unit Visteon Corp.

The automaker also posted full-year net income of $495 million, its first annual profit since 2000 as it cut costs and saw record earnings at its credit unit.

The quarterly loss included $2 billion in expenses related to Visteon and job cuts to stem losses in Europe. The annual profit was helped by $3.2 billion in pretax cost reductions and earnings of $1.8 billion at Ford Motor Credit Co. Ford said its automotive business, which may have yielded its rank as the world’s second biggest by sales volume to Toyota Motor Corp., had a $104-million annual pretax profit after a loss in 2002.

“It appears that Ford is on target with its profitability plans,” said Brian Bruce, head of equity investments at PanAgora Asset Management Inc. in Boston, which manages $13 billion, including 1.1 million Ford shares. “Whether or not they can keep this momentum will depend on continued cost cutting and sales growth.”

For the year, Ford’s net income was 27 cents a share, contrasted with a net loss of $980 million, or 54 cents, in 2002. Sales rose 3% to $138.4 billion, up from $134.3 billion.

Ford expects to raise pretax profit this year from its automotive business to as much as $1.1 billion, or about tenfold from 2003. Ford is counting on its redesigned F-150 pickup, as well as its redesigned Mustang sports car, new Five Hundred sedan and new Freestyle sport utility vehicle, which go on sale in the second half of the year.

However, Toyota may have surpassed Ford last year, ousting a century-old American icon.

Ford said global sales fell 3.5% to 6.72 million last year from 6.97 million in 2002. Toyota in December estimated that its sales rose 10% last year to 6.78 million cars and trucks from 6.17 million in 2002, boosted by sales in North America. Toyota will release a final figure next month.

The total reported Thursday by Ford represents sales of vehicles to dealers and tracks closely to production. Toyota reports sales to consumers worldwide, a figure that is less than its production number. Toyota estimates it produced 6.83 million vehicles last year. General Motors Corp. has been the largest automaker for 75 years.

Ford shares fell 1 cent to $16.43 on the New York Stock Exchange.