DEARBORN – Ford Motor Credit Company reported net income of $295 million in the first quarter of 2012, compared with $451 million a year earlier. On a pre-tax basis, Ford Credit earned $452 million in the first quarter, compared with $713 million in the previous year. The decrease in pre-tax earnings is primarily explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin, and lower credit loss reserve reductions.
“Once again, we are reporting a solid result for Ford Credit,” Chairman and CEO Mike Bannister said. “As a dedicated partner to Ford, we continue to be a consistent source of strong support for our dealers and exceptional service for our customers.”
On March 31, 2012, Ford Credit’s net receivables totaled $85 billion, compared with $83 billion at year-end 2011. Managed receivables were $86 billion on March 31, 2012, up from $85 billion on December 31, 2011.
On March 31, 2012, managed leverage was 8.1 to 1, compared with 8.3 to 1 at December 31, 2011. In the first quarter of 2012, Ford Credit distributed $200 million to its parent.
For full-year 2012, Ford Credit expects to be solidly profitable but at a lower level than 2011, with a projected full year pre-tax profit of about $1.5 billion. In addition, Ford Credit expects to pay total distributions of between $500 million and $1 billion to its parent in 2012. At year-end 2012, managed receivables are anticipated to be in the range of $85 billion to $95 billion.