Ford Reports $104-Million Profit

Ford Motor Co. on Thursday reported a quarterly profit, reversing a year-earlier loss, as earnings from its finance arm helped override weak automotive operations for the third straight quarter.

The second-largest U.S. automaker said fourth-quarter net income was $104 million, or 6 cents a share, compared with a year-earlier loss of $793 million, or 43 cents. Revenue fell to $44.72 billion from $45.87 billion a year earlier.

Separately, Ford said it would invest $1.2 billion to develop an industrial park at its Hermosillo plant in northern Mexico that would be capable of making different models at the same time.

Ford reaped 85% of its earnings from finance operations as it battled soaring healthcare costs and intense competition.

Excluding charges totaling $491 million after taxes, Ford earned $555 million, or 28 cents a share, in the fourth quarter. Wall Street analysts expected 27 cents, according to Reuters Estimates.

Its U.S. light vehicle sales fell 4.9% in 2004 and it ended the year with a market share of 18.3%, the lowest level in more than three decades.

Automotive operations are key to Ford’s future profitability and to achieving its annual pretax earnings target of $7 billion by 2006. Ford inched closer to that goal by making $5.81 billion before taxes and special items in 2004.

Ford saw its net income rise sevenfold to $3.48 billion in 2004 from $495 million in the previous year.

Ford shares closed down 47 cents at $13.46 on the New York Stock Exchange.