In a most-welcome surprise for the industry and for investors, Ford posted a $997 million 3Q profit with improved cash reserves that have the company on the road to being "solidly profitable" by 2011.

The pre-tax operating profit for the company was $1.1 billion, making the quarter the first time the troubled auto giant has seen positive numbers since early 2008. Ford reports $23.8 billion on hand in cash, an increase of $2.8 billion since the end of June.

CEO Alan Mulally said, "Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy." On the news, shares in Ford rose 9 percent, a climb of 63 cents to $7.63 by noon on Monday, November 2 amid heavy trading.

The company's successful quarter is attributed to reduced structural costs, higher profits for Ford Credit, and the performance of its new products. Like all automakers, Ford saw sales jump in July and August thanks to the government's cash-for-clunkers program.

Analysts had predicted a third-quarter loss equal to 12 cents per share, not a 26 cent per share profit. Whereas Ford once expected to "break-even or better" in 2011, the company now predicts profits and positive cash flow, a huge improvement that should spur further jumps in Ford stock as well as help to buoy investor confidence at large that the recession has begun to turn.