Automaker Ford Motor Co. (F) posted a $2.6 billion quarterly profit on Friday, the company’s fifth consecutive quarterly profit, but warned that the second half of the year will be slower than the first half.

The only American auto maker not to file for Chapter 11 bankruptcy or seek emergency federal aid said it earned $2.6 billion, or 61 cents a share, up from $2.3 billion, or 69 cents per share, from a year ago.

Revenue during the quarter was $31.3 billion, up $4.5 billion from last year.

Ford’s results easily exceed analysts’ expectations, who were looking for the Detroit automaker to earn 40 cents a share on revenues $29.8 billion, according to data by Thomson Reuters.
Like its major U.S. competitors, Ford has been slimming its brands and product offerings to focus on specific models that have lots of available features. The company affirmed its intent to phase out the Mercury brand to focus on Ford and Lincoln vehicles.

"We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions," said Ford President and CEO Alan Mulally in a statement.

North America was Ford’s biggest profit driver this quarter, with the division reporting net revenues of $1.2 billion compared with a loss of $899 million last year.

Ford’s other geographic divisions -- South America, Europe and Asia Pacific Africa -- also all reported pre-tax profits.

The company paid down $7 billion in debt in the quarter, leaving the company with automotive debt of $27.3 billion versus the company’s cash position of $21.9 billion. The company expects that in 2011 it will move into a net-cash position, a notable move for a industry that has been rattled with debt for decades.