DEARBORN – Ford Motor Credit Company reported net income of $383 million in the second quarter of 2011, a decrease of $173 million from a year earlier. On a pre-tax basis, Ford Credit earned $604 million in the second quarter, compared with $888 million in the previous year. On a pre-tax basis, Ford Credit earned $1.3 billion in the first half of 2011, compared with $1.7 billion in the first half of 2010.
The decrease in pre-tax earnings reflects primarily lower credit loss reserve reductions and the non-recurrence of lower lease depreciation expense of the same magnitude as 2010.
“Ford Credit’s business continues to perform well, with low credit losses and strong originations capability,” Chairman and CEO Mike Bannister said. “We continue to succeed in our mission to support Ford sales.”
On June 30, 2011, Ford Credit’s net receivables totaled $84 billion, compared with $81 billion at year-end 2010. Managed receivables were $86 billion on June 30, 2011, up from $83 billion on December 31, 2010. The higher receivables were primarily due to changes in currency exchange rates.
On June 30, 2011, managed leverage was 7.5 to 1. In the second quarter of 2011, Ford Credit distributed $1.0 billion to its parent.
For full-year 2011, Ford Credit continues to expect to be solidly profitable but at a lower level than in 2010, reflecting the same factors mentioned above. At year-end 2011, managed receivables are anticipated to be in the range of $82 billion to $87 billion. Through June 30, 2011, Ford Credit has paid $1.9 billion in distributions to its parent and expects to pay a total of about $3 billion for full-year 2011.