January 23, 2006 11:00 AM, EST

Ford’s Earnings Rise; Automaker to Close Plants, Cut Jobs

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ord Motor Co.'s fourth-quarter earnings rose 19% to $124 million and it earned $2 billion last year, but the company will close North American plants and cut up to 30,000 jobs, the Associated Press reported.

Ford will cut 25,000 to 30,000 jobs and close 14 North American facilities by 2012, including seven vehicle-assembly plants, as part of its “Way Forward” restructuring plan, AP said.

The cuts represent 20% to 25% of the automaker’s North American work force of 122,000, AP reported.

Ford’s income gain was due in part to the sale of its Hertz Corp. rental division and improved profits from its luxury brands, AP said.

The $2 billion profit for the year was 42% below the previous year, AP reported.

The full-year earnings of $1.04 a share were down from a profit of $3.5 billion or $1.73 per share in 2004. Full-year revenue was $178.1 billion, up from $171.7 billion a year earlier.

Chairman and Chief Executive Officer Bill Ford also said the company would discontinue issuing annual earnings guidance.

In addition to automobiles, Ford also makes light and medium-duty trucks.

Ford reduced employment last year by 10,000 due to layoffs, buyouts and attrition, AP reported. Ford has about 300,000 employees worldwide.