Skip Ribbon Commands
Skip to main content

 Ford Credit Earns $296 Million Net Income in the Second Quarter of 2012

DATE: Will be calculated from "Release Start Date" field.

​DEARBORN – Ford Motor Credit Company reported net income of $296 million in the second quarter of 2012, compared with $383 million a year earlier.  On a pre-tax basis, Ford Credit earned $438 million in the second quarter, compared with $604 million in the previous year.

The decrease in pre-tax earnings is more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, and lower financing margin.

“We had another solid quarter, led by our ongoing strong credit-loss performance,” Chairman and CEO Mike Bannister said. “We are on track to achieve our projected full year pre-tax profit. Our business plan is working, delivering profits and distributions for Ford, and support of Ford vehicle sales around the world.”

On June 30, 2012, Ford Credit’s net receivables totaled $84 billion, compared with $83 billion at year-end 2011.  Managed receivables were $86 billion on June 30, 2012, up from $85 billion on December 31, 2011.

On June 30, 2012, managed leverage was 8.1 to 1, compared with 8.3 to 1 at December 31, 2011.  Ford Credit distributed $100 million to its parent in the second quarter.

Ford Credit continues to expect full year pre-tax profit of about $1.5 billion, and total distributions to its parent of between $500 million and $1 billion. Ford Credit now projects managed receivables at year end to be in the range of $85 billion to $90 billion, and managed leverage of 8-9:1 for the foreseeable future, which is a decrease from the prior target of 10-11:1 and is consistent with its goal of achieving and maintaining a strong investment grade balance sheet.

Click here to download the complete release.

  

By  

Yes
Yes
Yes
7/25/2012 7:00 AM