DEARBORN – Ford Motor Credit Company reported a pre-tax profit of $1.7 billion in 2012, compared with $2.4 billion a year earlier. 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 as higher yielding assets originated in prior years run off. Ford Credit’s net income was $1.2 billion in 2012, compared with $1.8 billion in the previous year.
In the fourth quarter of 2012, Ford Credit’s pre-tax profit was $414 million, a decrease of $92 million from a year earlier. The decrease in pre-tax earnings is primarily explained by lower credit loss reserve reductions and lower financing margin. Ford Credit reported fourth quarter net income of $268 million, a decrease of $343 million from a year earlier. The decrease is primarily explained by the non-recurrence of a one-time, non-cash item related to Ford Credit’s net deferred tax liability.
“Our 2012 results were solid, and we expect another strong performance in 2013,” Ford Credit Chairman and CEO Bernard Silverstone said. “We will remain focused on providing unparalleled support and service for Ford, our dealers and our customers.”
On December 31, 2012, Ford Credit’s net receivables totaled $90 billion, compared with $83 billion at year-end 2011. Managed receivables were $91 billion on December 31, 2012, up from $85 billion on December 31, 2011.
On December 31, 2012, managed leverage was 8.3:1, unchanged from December 31, 2011. Ford Credit distributed $600 million to its parent in 2012.
For 2013, Ford Credit projects a full year pre-tax profit about equal to 2012; managed receivables at year end in the range of $95 billion to $105 billion; managed leverage to continue in the range of 8:1 to 9:1; and planned distributions of about $200 million.