Ford's earnings rose in fourth quarter

Its North American automotive operations lost $143 million in the October-December period, an improvement from a loss of $470 million the same period a year ago. Ford said the improvement was due to cost reductions and favorable vehicle pricing but was offset by losses at Visteon facilities now controlled by Ford.

For the year, the North American operations reported a loss of $1.6 billion in 2005, as sales of sport utility vehicles plummeted in the wake of high gas prices. North American sales were $81.4 billion, down from $83 billion a year before. The automaker’s U.S. sales were down 4 percent in 2005.

Ford’s worldwide automotive sector reported a loss of $12 million for the quarter, an improvement from a loss of $470 million a year ago. The company said that reflected favorable net pricing, exchange rates and other factors.

Worldwide automotive revenues for 2005 were $154.5 billion, up from $147.1 billion a year ago. Ford Motor Credit Co., Ford’s finance division, reported net income of $2.5 billion, down $370 million from the year before due to lower volumes and margins.

Losses in North America were partially offset by gains elsewhere. Ford Europe and the Premier Automotive Group, which includes the Jaguar, Volvo and Land Rover brands, reported a combined pretax profit of $36 million for the year, versus a loss of $626 million in 2004.

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Full-year profits in Asia/Pacific and Africa were $61 million, up from $16 million a year ago, and profits in South America more than doubled to $389 million.

“Excluding North America, our automotive operations made great progress in 2005,” Ford Chairman and CEO Bill Ford said in a statement. “We must keep working to improve our business in each and every region.”

Ford said it reduced employment in 2005 by 10,000 people due to layoffs, buyouts and attrition. Ford has around 300,000 employees worldwide.

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