DEARBORN, MICH. -- Ford Motor Co. yesterday reported a larger loss for the fourth quarter, as the cost of job cuts in Europe and a restructuring of its spinoff deal with former parts arm Visteon Corp. offset improved finance and automotive results.

But Ford reported a full-year final profit for the first time since 2000, and operating profits for the year and the quarter topped Ford's own forecasts. Ford chairman and chief executive officer Bill Ford has said repeatedly he prefers the company to "underpromise and overdeliver" on its turnaround plan aimed at producing $7-billion (U.S.) in annual pretax profit later this decade.

While Ford has set a target of at least maintaining its global market share this year by launching 40 new models, executives say the cost of those launches and weak pricing in Europe and the United States will put pressure on earnings.

"We continue to believe that Ford is in a tough spot between [General Motors] and the Japanese, limiting earnings growth potential, but it is undeniable that the company's execution is improving," Merrill Lynch analyst John Casesa said in a research note.

Lower sales and production of vehicles and engines at Ford Motor Co. of Canada Ltd. sent revenue skidding 11 per cent at the Canadian operations of the second-largest U.S.-based auto maker. Revenue fell to $20.8-billion (Canadian) from $23.3-billion in 2002. Revenue is reported annually, profit is consolidated with Ford Motor's results, so no Canadian profit figures are available.

Canadian production of full-sized sedans, minivans and pickup trucks fell to 460,766 last year from 514,712 in 2003. Engine production slid to 1.1 million from 2.1 million. Vehicle sales dipped 6 per cent to 242,234 from 258,807.

"As expected, the automotive industry in Canada slowed in 2003 coming off a record sales pace the previous year," Alain Batty, president of Ford Canada, said in a statement. The auto maker is poised for a successful 2004, Mr. Batty added.

Ford Motor and General Motors Corp. have promised investors better results from their automotive businesses this year after relying on their finance arms to produce much of their 2003 profit. On Tuesday, GM posted a better-than-expected quarterly profit on record profit from its finance operations.

Ford said it lost $793-million or 43 cents a share in the quarter, compared with a loss of $130-million or 7 cents in the same period a year ago. Excluding $2-billion in charges from Europe and Visteon, Ford said it earned 31 cents a share, compared with 11 cents in the fourth quarter of 2002.

Ford said 2003 profit totalled $495-million or 27 cents a share. Excluding special items, Ford said it earned $1.14 a share.

Ford, which may have been passed by Toyota Motor Corp. as the world's second-largest auto maker in 2003, said full-year revenue increased about 1 per cent to $164.2-billion, even as vehicle sales fell about 4 per cent to 6.7 million.

Ford's market share in the United States fell by 0.6 percentage points to 20.5 per cent in 2003.

Ford Europe, where Ford has launched a plan to cut 6,700 jobs in a bid to reduce losses, reported a pretax profit of $60-million, its only profitable quarter of 2003.

Reuters News Agency, with files from reporter Greg Keenan