Quarterly automotive profits were hurt by higher commodity costs, rising compensation costs in North America -- including a one-time ratification bonus related to Ford's new contract with the UAW -- and unfavorable exchange rates. Floods in Thailand contributed to a loss in the Asia Pacific Africa region after a year-earlier profit.
Fourth-quarter net income surged to $13.6 billion from $190 million a year earlier and the highest for any fourth quarter ever, aided by a one-time accounting gain. Revenue for the October-December period rose 6 percent to $34.6 billion.
"Despite the continued uncertainty in the external environment, the strength of our North American and Ford Credit operations allows us to continue to invest for future growth,"CEO Alan Mulally said in a statement.
Full-year pretax operating profit rose 6 percent to $8.8 billion.
Full-year net income tripled to $20.2 billion, highest since 1998, bolstered by a non-cash special item of $12.4 billion.
That gain stemmed from eliminating a valuation allowance against deferred tax benefits. Ford no longer needs the reserve because it expects to be profitable in coming years and be able to use the tax benefits, according to a U.S. filing. The resource was created in 2006 as Ford began reporting losses that would total $30.1 billion through 2008.
Ford CFO Lewis Booth said: "The release of most of our valuation allowance is a really positive step and a strong indication of profits going forward."
Full-year revenues rose 13 percent to $136.3 billion.
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