FORD Motor Co posted a US$1.7 billion quarterly profit yesterday that exceeded Wall Street expectations and said it expected to eliminate a net debt position in its automotive business by year-end.

Ford, which expects to be solidly profitable in 2010, said it had repaid US$2 billion of debt in the third quarter and on Friday will repay its remaining US$3.6 billion of debt owed to a retiree healthcare trust for the United Auto Workers union.

Net profit rose to US$1.7 billion, or 43 cents per share, in the third quarter from US$997 million, or 29 cents per share, a year earlier. Excluding the Volvo unit it sold in August, revenue rose US$1.7 billion to US$29 billion.

Operating profit was 48 cents per share excluding one-time items. On that basis, analysts on average expected Ford to report earnings of 38 cents, according to Thomson Reuters.