Ford Posts Surprising $1 Billion Profit

(Updated with additional details on Ford's earnings reports, along with pre-market stock price.)

DETROIT (TheStreet) -- Ford(F Quote) roared past estimates, reporting fourth quarter net income of $997 million.

The automaker said it earned 29 cents a share. Analysts surveyed by Thomson Reuters had estimated a loss of 12 cents. Revenue fell 3% to $30.9 billion. Analysts had estimated $28.3 billion.

Excluding special items, Ford posted pre-tax operating profits totaling $1.1 billion, an improvement of $3.9 billion from a year ago. Excluding special items and after tax, Ford posted an operating profit of $873 million or 26 cents a share, compared with a loss of $3 billion, or $1.32 per share, in the same period a year earlier.

"Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said CEO Alan Mulally, in a prepared statement.

The company said it expects to be "solidly profitable" in 2011, excluding special items, with positive cash flow from operations.

During the quarter, Ford North America posted a pre-tax operating profit of $357 million, its first profitable quarter since the first quarter of 2005. Automotive revenue rose by $100 million, offset by a decrease in Ford Credit's revenue reflecting a decline in receivables.

On the cost side, Ford reduced its automotive structural costs by $1 billion in the quarter, largely driven by lower manufacturing and engineering costs. Through the first nine months, Ford has achieved $4.6 billion in automotive structural cost reductions, exceeding its full-year 2009 target of $4 billion.

The company ended the quarter with $23.8 billion in automotive gross cash, up $2.8 billion from the end of second quarter.

In pre-market trading, Ford shares were up 30 cents or 4% to $7.30.

-- Written by Ted Reed in Charlotte, N.C. .