DEARBORN – Ford Motor Credit Company reported net income of $355 million in the third quarter of 2012, compared with $350 million a year earlier. On a pre-tax basis, Ford Credit earned $393 million in the third quarter, compared with $581 million a year earlier.
Net income in the third quarter of 2012 includes a favorable, one-time, non-cash item from the release of a valuation allowance against certain deferred tax assets in South America. The decrease in pre-tax earnings is more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin, and the non-recurrence of credit loss reserve reductions.
“We remain on track for solid full-year results, and credit-loss performance continues to be in line with historical lows,” Chairman and CEO Mike Bannister said. “We are pleased to continue our consistent and profitable support of Ford Motor Company sales.”
On September 30, 2012, Ford Credit’s net receivables totaled $85 billion, compared with $83 billion at year-end 2011. Managed receivables were $87 billion on September 30, 2012, up from $85 billion on December 31, 2011.
On September 30, 2012, managed leverage was 8.0 to 1, compared with 8.3 to 1 at December 31, 2011. Ford Credit distributed $300 million to its parent in the third quarter and $600 million in the first nine months of 2012.
Ford Credit now expects full year pre-tax profit of about $1.6 billion and total distributions to its parent of about $600 million. Ford Credit continues to project managed receivables at year end to be in the range of $85 billion to $90 billion.