Ford Motor Co. (F) swung to a near $1 billion profit last quarter, the company reported Monday, fueled primarily by the government’s massive “cash for clunkers” program and ongoing cost cutting measures.

The Dearborn, Mich., company said it posted a net profit of $997 million, or 29 cents a share, compared with a loss of $161 million in the same period a year ago. Ford’s results blew away analysts’ expectations of a loss of 12 cents a share, sending Ford’s stock up more than 9% in the pre-market session.

“Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford president and CEO Alan Mulally in a statement.

Ford said its results were boosted by government programs, market share gains against its foreign and domestic rivals and cost cutting. The company said it reduced operating structural costs by $1 billion in the quarter to a total of $4.6 billion for the first nine months of the year. The government’s “cash for clunkers” helped boost sales, but Ford said that the ending of the program could impact sales in future quarters.

The company said its North America division earned a pre-tax profit of $357 million during the quarter, the first profitable quarter for Ford’s American operations since 2005. The company also boosted its full-year 2011 guidance, saying that it’s North America operations will be "solidly profitable" on a pretax basis excluding special items, compared to the company’s previous forecast of "breakeven or better.”

For the broader business, Ford expects all of its divisions will be “solidly profitable” in 2011 excluding special items, with positive operating cash flow.

Shares of Ford were up 50 cents to $7.50 a share.