By Michelle Krebs

Ford reported a second-quarter profit of $2.6 billion -- its best performance since the first quarter of 2004. Ford said the quarter, with results higher than analysts had estimated, sets the stage for an even better 2011 as each business unit, including  North American automotive operations, showied a significant improvement.

"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 issued Friday morning. 

"We remain on track to deliver solid profits and positive automotive operating-related cash flow for 2010, and we expect even better financial results in 2011," he added. Ford said by the end of 2011, it expects to have more cash than debt. Ford's huge debtload has been seen as its major challenge for the future.