Ford posts quarterly profit, raises 2010 outlook

Ford Motor Co posted a stronger-than-expected $2.1 billion quarterly profit and said it would be "solidly profitable" in 2010, a year ahead of schedule, driven by strong U.S. sales and market share gains.

Ford, whose shares were off nearly 5 percent on Tuesday after touching a five-year high on Monday, raised its North American production plan for the current quarter as well as the 2010 outlook for its Ford Motor Credit financing arm.

Chief Executive Alan Mulally said the results were "further evidence" that the automaker's turnaround was working.

"The basic engine that drives our business results -- products, market share, revenue, and cost structure -- is performing stronger each quarter," Mulally told analysts on a conference call.

The first-quarter results included operating profits in all regions, and included the Swedish brand Volvo, which Ford has agreed to sell to China's Geely.

Ford has benefited from improved public perception, in part because of the government bailouts of General Motors GM.UL and Chrysler, and Toyota Motor Corp's massive U.S. vehicle recalls and sales halt in the first quarter.

However, Ford's edge may begin to fade with Toyota offering record incentives to boost U.S. sales, GM repaying government loans and Chrysler declaring a first-quarter operating profit.

"Just looking at the first-page numbers, they had a fantastic quarter," Morningstar analyst David Whiston said. "But it would not be easy competition going forward ... It will get a little bit harder for Ford to keep it up in North America."