Ford's earnings rose in fourth quarter

updated 12:49 p.m. ET Jan. 23, 2006

DEARBORN, Mich. - Ford Motor Co., the nation’s second biggest automaker, said Monday that it earned $124 million in the fourth quarter, up 19 percent from the previous year thanks to the sale of its Hertz Corp. rental division and improved profits for its luxury brands. The company said it earned $2 billion for the year, down 42 percent from a year earlier but still its third consecutive yearly profit.

The earnings report came several hours before Ford announced a restructuring plan that included plant closings and job cuts in its struggling North American division. Ford shares rose 37 cents to $8.27 in premarket trading.

Ford said earnings amounted to 8 cents a share for the October-December period compared with $104 million, or 6 cents a share, a year ago. Revenue was $47.6 billion for the quarter, up from $44.9 billion a year ago.

Ford said several special items reduced its earnings by 6 cents per share in the fourth quarter. Those included a pretax charge of $1.3 billion for ongoing restructuring at its Jaguar and Land Rover divisions, a $962 million charge for personnel reductions and a profit of $1.4 billion for the sale of its Hertz Corp. rental car division.

Excluding all special items, including changes in accounting, Ford said its after-tax income was $511 million in the fourth quarter, or 26 cents per share, compared to $554 million, or 28 cents per share, a year ago.

Analysts surveyed by Thomson Financial were looking for earnings of a penny per share. Those estimates typically exclude special items.

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Ford’s full-year earnings of $1.04 a share compared with a profit of $3.5 billion, or $1.73 per share, in 2004. Full-year revenues were $178.1 billion, up from $171.7 billion a year ago.

Ford said special items reduced its full-year income by 15 cents per share. That included a $468 million charge related to the restructuring of Visteon Corp., Ford’s former parts division. Ford agreed to take back 23 Visteon facilities last fall in a deal designed to stave off bankruptcy at the supplier.

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