DETROIT ( TheStreet) - Ford ( F) reported its highest annual net income in 10 years, but fourth-quarter earnings fell short of estimates. Excluding items, Ford earned a pretax operating profit of $1.3 billion, or 30 cents a share. Analysts surveyed by Thomson Reuters had estimated 48 cents. The pretax operating profit declined by $322 million from a year earlier. Revenue was $32.5 billion; analysts were expecting revenue of $30.4 billion. Including a $960 million charge for completion of debt conversion offers in the fourth quarter, net income was $190 million, or 5 cents a share. Fourth-quarter automotive pretax operating profit was $741 million, a decrease of $173 million from a year ago. Fourth-quarter financial services pretax operating profit was $552 million, a decrease of $149 million. North America posted a fourth quarter pretax operating profit of $670 million, up by $59 million. In Europe, Ford reported a pretax operation loss of $51 million, compared with a profit of $253 million a year earlier. Ford said the result was less than expected, "reflecting primarily lower market share driven by actions to maintain margins." For the full year, net income was $6.6 billion. "Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all," said CEO Alan Mulally, in a prepared statement. "We are investing in an unprecedented amount of products, technology and growth in all regions of the world." During the year, Ford reduced automotive debt by $14.5 billion, a 43% reduction, and finished the year with automotive debt of $19.1 billion and with automotive gross cash of $20.5 billion.