Three Times is a Charm for Ford

For the third successive year, Ford F reported a full-year profit on Friday. Not only that, but it is the company's largest profit in a full 13 years. 2011 was a good year for all of the Big 3 of Detroit, with sales figures looking pretty for GM and Chrysler too. Still, Ford's achievement is certainly something to celebrate, especially when considering the fact that the company had to contend to higher commodity costs and losses outside of the U.S. Strong North American sales have not only saved Ford's year, but made it something to be proud of. It made an accounting adjustment in 4Q11 worth $12.4 billion, and that pushed the full year earnings up to $20.2 billion, the second highest total in the company's history. According to the New York Times, this one-time gain eliminates most of the tax allowance created during the company's “dark time” in 2006, when dollars were being hemorrhaged. On the plus side, the gain suggests that Ford expects to continue bringing in the big bucks over the coming years, according to Ford chief financial officer Lewis W.K. Booth. “We delivered strong results for the full year as we continued to serve our customers around the world with best-in-class vehicles and make progress toward our mid-decade goals,” Ford's chief executive, Alan R. Mulally, said in a statement. “Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allow us to continue to invest for future growth.” As for the numbers, Ford brought in $6.3 billion for the full year in North America, although is lost $119 million in Europe and Asia. Those losses saw the 4Q profits drop a little, but that did not really put the dampers on the overall good feeling. The net profit came out at $4.94 a share, a huge improvement on $1.56 a share the previous year, when the company brought in a profit of $6.6 billion. Take out that accounting change, and Ford still earned an operating profit of $8.8 billion for the year. In other words, and this is for you cynics out there, no matter how you twist and turn it, Ford had a great year and, after suffering so badly in recent years, the company should be congratulated for turning things around. The people of Detroit can celebrate too, as this is further proof that the city is on the rise.