• by Karl Greenberg , November 2, 2009

If Ford is in turnaround mode, it seems to have tightened its turning radius. The company, which reported solid results for the third quarter, is also brightening its outlook for the full-year 2011 performance from "break even" to "solidly profitable." If that's the case, it will be the first profitable year for the automaker since 2005.

In its third-quarter earnings statement, the company said market-share gains from models such as Ford Focus and Escape -- which were among the top sellers during August's "Cash for Clunkers" program -- have helped make the July-September period the first profitable quarter in four years.

Other elements that boosted Ford third-quarter income to around $1 billion were cost-cutting measures associated with the "One Ford" program to synchronize vehicle platforms around the world, as well as labor cuts and factory rationalization.

The Dearborn, Mich.-based automaker reported that in North America it chalked up $357 million in profit. By contrast, the company lost $2.6 billion in the quarter last year. In September, Ford also enjoyed the biggest market-share gain in the U.S. of any automaker. The company said this year it will finish with year-over-year market-share gains in the U.S., which it has not done since the mid 1990's.

Globally, the company says it gained share in North America, South America, and Europe during the quarter, with U.S. share increasing 2.2% versus the quarter last year. Ford says all three of its brands saw sales gains in the quarter.

"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford CEO Alan Mulally in a statement. "Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our 'One Ford' transformation plan is working and our underlying business continues to grow stronger."