Washed It!

Ford Motor Co. demonstrated the growing strength of the U.S. auto industry Tuesday by posting a third-quarter profit of $1.7 billion, a 69% jump over the same period a year ago and surpassing a previous record set in 1997.

The automaker — which unlike General Motors Co. and Chrysler Group avoided bankruptcy reorganization last year — benefitted from both cost cutting and top-line performance, gaining U.S. market share and selling vehicles for higher prices.

“Overall, we are doing better than we expected through the first nine months of the year,” said Alan Mulally, Ford’s chief executive, “and we expect to deliver solid profits in the fourth quarter and for the full year.”

Ford has reduced its level of sales-incentive spending at the same time buyers are adding options to their cars and spending more, according to Edmunds.com, the auto information company. Edmunds.com estimated that buyers paid an average of $30,636 for a Ford in September, slightly higher than a year ago and up 10% from five years ago.

“For a long time, they weren’t really in the car market very strongly, depending mostly on trucks and SUVs. Now they have good cars, and the car market is where the action has been in recent years,” said Jessica Caldwell, an analyst with Edmunds.com.

Ford’s profit equaled 43 cents a share and compared with earnings of $1 billion, or 29 cents a share, in the same period a year earlier. It was the automaker’s sixth consecutive profitable quarter. Revenue fell to $29 billion from $30.3 billion a year earlier, before the company sold off Volvo, the Swedish automaker, to focus on its core Ford and Lincoln brands. Year to date, the company has earned $6.4 billion.

In early trading, Ford shares rose 7 cents to $14.22.

“This was another strong quarter,” said Mulally. “The key drivers for improvement in 2011 will be our growing product strength, a gradually strengthening economy and an unrelenting focus on improving the competitiveness of all our operations.”

On Friday, Ford plans to use some of the cash it is generating to pay off the remaining $3.6 million it owes to the United Auto Workers union retiree healthcare trust, which will save it about $330 million in annual interest expenses. The automaker borrowed heavily to stay afloat during the recession and is working to pay back those loans.

The payment will reduce the company’s total debt to $22.8 billion, a net reduction of $10.8 billion from the end of 2009. Ford said it expected its cash holdings to be equal to its total debt by the year’s end, earlier than it previously anticipated. Ford also plans a stock offering that would convert $3.5 billion in debt to common stock during the fourth quarter.

“We are clearly ahead of where we thought we would be on improving our balance sheet and repaying our loans,” Mulally said. “This allows us to reduce our annualized interest payments by over $800 million.”

Ford’s American operations had an operating profit of $1.6 billion, compared with $300 million in the same period a year earlier. The company was profitable in South America and in Asia, driven by gains in China and India, but lost money in Europe. The company said it expected its European operations to become profitable in this year’s fourth quarter.

Much of the automaker’s success is coming from a string of successful new products, such as the Fusion sedan and the Edge SUV. Truck sales, especially government and business fleet sales of the F-150 pickup also added to the quarterly profit, Caldwell said.

Ford’s latest vehicles have been well received by consumers.

“It’s much better than the Ford of five years ago,” Caldwell said.

Ford sales have risen 21% to 1.4 million vehicles through the first nine months of this year. That’s more than double the overall industry gain. Its share of the U.S. market has grown to 16.7% from 15.2% — the largest jump of any automaker this year, according to Autodata Corp.

The automaker has been able to restructure so it can operate profitably with what are considered historically low auto sales numbers.

There are some signs of a more robust rebound in the U.S. auto market, which was up about 10% through the first nine months of the year.

Mark Fields, Ford’s president of the Americas, said Monday that U.S. auto sales hit an annualized pace of about 12 million vehicles in October, its best rate so far this year. Automakers will report their October sales results next week.

jerry.hirsch@latimes.com

Ford third-quarter profit soars 69% over a year ago

Just a day after 33 Chilean miners were freed from their underground prison, they were in good health overall, officials said Thursday, with some of the men set to be released from the hospital by the end of the day. As Chilean President Sebastian Pi

It wasn’t tough decisions on California’s ailing schools, or the prison crisis or the direction of healthcare reform that kept lawmakers locked in chambers for more than 20 hours before they finally passed the latest budget in state history Friday morning.

What bedeviled the process of approving the $125-billion spending plan was such matters as whether electronic highway billboards should have advertisements, whether a big political donor should be appointed to a state commission, whose name should adorn a disaster-relief bill, and whether the state needs a paid secretary of volunteerism.

The vote was supposed to be easy, a bipartisan election-year feint that pushed tough decisions into the future, papering over the deficit with clever accounting.

The budget lawmakers passed would keep state services at the status quo, with a freeze on school spending, modest trims to healthcare programs and some new money for universities.

It assumes billions of dollars in federal aid that most experts agree will never materialize and relies on loans and bookkeeping maneuvers such as transfers and funding shifts.

Yet the approval process became an all-night affair, with tens of millions of dollars in transportation spending lost because lawmakers had a spat over electronic billboards and DUI checkpoints.

Some Democrats disliked a provision to sell advertising space for soft drinks, automobiles or other products alongside the flashing alerts about abducted children and hazardous road conditions on the more than 700 state-owned electronic freeway billboards. The proposal was pushed by Gov. Arnold Schwarzenegger.

“Who thinks it’s a good idea to give drivers one more reason to take their eyes off the road?” said Sen. Joe Simitian (D-Palo Alto). He chairs a budget subcommittee that initially rejected the plan, which was later reinserted into the budget by legislative leaders.

Sen. Gil Cedillo (D-Los Angeles) sought to make the multi-provision bill more palatable by adding a new measure. It addressed an element of alleged corruption in Bell, where the city was reported to be making money by towing the cars of sober immigrants from DUI checkpoints if they did not have proper ID.

Without a provision banning such a practice, Cedillo was refusing to vote for it and other parts of the budget, which was contained in 21 bills. Democrats added it. Some Republicans said the proposal could interfere with legitimate law-enforcement actions, and the bill failed to garner enough votes to pass. So the Senate killed the entire $112-million transportation bill.

Just after dawn, an impromptu hearing was needed to get a bill authorizing schools funding back on track. GOP senators were refusing to put up the votes for it, and the measure came up short. Senate leader Darrell Steinberg (D-Sacramento) abruptly announced there would be a 120-second hearing, stopped business on the budget and conducted a confirmation proceeding that took just slightly longer.

Senators approved a Schwarzenegger nominee to the California Transportation Commission whom they had refused to confirm through the normal committee process. Steinberg, with a hint of sarcasm, declared the nominee, Fresno developer and GOP donor Darius Assemi, “eminently qualified.”

Sen. Jeff Denham (R-Atwater) spoke in praise of Assemi and changed his vote. The education bill passed.

Over in the Assembly, meanwhile, lawmakers were annoyed by a demand they said came from the governor. It called for the state to create a “Secretary of Volunteerism,” a paid post. The idea was heavily mocked in side conversations and during floor debates.

“I would like to volunteer to be the Wizard of Adjournment,” Assemblyman Roger Niello (R-Fair Oaks) said after 3:30 a.m., when the legislation finally passed the lower house

Ultimately, the full Legislature approved the post, with some lawmakers expressing worry that the governor might otherwise use his line-item veto authority to retaliate.

“This was the governor’s thing — or else his blue pencil came out,” said Sen. Fran Pavley (D-Agoura Hills).

Other last-minute side issues included a bid by Republicans to secure a tax break for online travel companies such as Orbitz and Expedia. It didn’t survive. A proposal to help San Diego use more redevelopment funds in a way that could help facilitate construction of a new NFL stadium made it to the governor’s desk.

Special tax breaks for a timber company, cable companies and software firms made it to the governor’s desk too. So did a provision that could help boost the bottom line of an ethanol company founded by former Secretary of State Bill Jones, an ally of and contributor to Schwarzenegger.

Not all of the bickering was partisan. Sen. Leland Yee of San Francisco, a Democrat, refused to vote with most of his caucus on many elements of the budget. He paid a price: Disaster-relief legislation that he wrote for families affected by the San Bruno explosion and fire was killed, and Democrats later moved to Schwarzenegger an identical measure without Yee’s name on it.

Lawmakers sweat the small stuff

Authorities said eight people were killed and 10 injured when a driver racing in the California 200 desert race in Lucerne Valley lost control of his off-roader, which went airborne and landed on top of spectators. The driver, who was uninjured, and seven of the eight people killed were identified Sunday by officials.

The driver “got airborne and, when he landed, rolled over straight into the spectators,” said Officer Joaquin Zubieta of the California Highway Patrol, the agency investigating the deadly crash. “People didn’t have much of a chance … to get out of the way.”

Six spectators died at the scene. Nine others were airlifted to local hospitals, two of whom died later in the evening, Zubieta said. Of those hurt, five sustained major injuries and five had minor injuries, officials said. Brett M. Sloppy, of San Marcos, was the driver of the truck, according to Zubieta.