Ford Motor Co. reported second-quarter net income of $2.6 billion, completing its most profitable first half in more than a decade, as car buyers pay more for its new models, Bloomberg reported.

Ford earned $4.7 billion in the year’s first six months, its largest first-half profit since 1998, and posted its fifth straight profitable quarter. Excluding some items, profit was 68 cents a share, topping the 41-cent average estimate of 12 analysts compiled by Bloomberg. The second-largest U.S. automaker earned $2.26 billion a year earlier, helped by an accounting gain.

CEO Alan Mulally overhauled Ford’s lineup, redesigning cars such as the Taurus and Fusion, and adding extras like heated leather seats and voice-activated electronics. He also boosted quality, winning Ford price gains of $1.1 billion on cars and trucks in the quarter and helping all of its auto units worldwide to become profitable.

Second-quarter sales rose 15 percent to $31.3 billion from $27.2 billion a year ago. Excluding Volvo, which the company is selling, the year-ago revenue was $26.8 billion, Dearborn, Michigan-based Ford said today in a statement. The average of eight analysts’ estimates was for revenue of $29.4 billion.

The shares rose 63 cents, or 5.2 percent, to $12.72 at 4:02 p.m. in New York Stock Exchange composite trading, its highest close since May 4. The stock has gained 27 percent this year.

Ford’s automotive operations had $21.9 billion in cash on June 30, down from $25.3 billion on March 31. Ford paid down automotive debt by $7 billion in the second quarter, lowering it to $27.3 billion from $34.3 billion at the start of the quarter.

Ford said today it will have a positive automotive net cash position by the end of 2011.

“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,” Mulally said in the statement.

Ford said it won’t earn as much in the second half because of high costs “to support growth and key product introductions, as well as higher commodity costs and smaller reductions in reserves at Ford Credit.” Ford will begin selling the redesigned Explorer sport-utility vehicle and Focus small car in the second half. Ford said it expects the costs associated with new models will rise $1 billion this year in addition to $1 billion in extra costs for raw materials such as steel.