Ford says on track to improve balance sheet

Ford Motor Co is on track to improve its balance sheet as the auto industry rebounds from a severe downturn and the U.S. economy stages a slow recovery next year, executives said on Friday.

Executive Chairman Bill Ford Jr. said the automaker would spend more time in 2010 to address its balance sheet.

The only major U.S. automaker not to restructure under a U.S. government-funded bankruptcy in 2009, Ford faces pressure to reduce its long-term debt, now a much heavier burden on the company than on rivals General Motors Co and Chrysler.

Ford borrowed more than $23 billion in late 2006, mortgaging most of its remaining secured assets including the familiar Blue Oval logo, to amass cash to fund a restructuring and continue with its product development plans.

"Obviously our balance sheet strategy is something we spent a lot of time on, and we will be spending even more time on," Ford told reporters on the sidelines of an event at a Ford assembly plant in Wayne, Michigan, near Detroit.

"We have a really good plan to address all the balance sheet issues," Ford said.

Chief Executive Alan Mulally told reporters Ford remains "right on our plan" to improve its balance sheet, a process that will accelerate as the company returns to profitability.

"We have a temporary disadvantage right now because we are paying a little bit more in interest rate, but everybody knows how fast we are getting back to profitability and free cash flow and then we will just accelerate the improvement in the balance sheet," Mulally said.

Ford posted a nearly $1 billion third-quarter profit that was better than the average analyst expectation and raised its outlook to "solidly profitable" in full year 2011 from at least breakeven.

Mulally said going into 2010 Ford was probably the best positioned it had ever been to lead the recovery and would stay focused on executing its turnaround plan.