DEARBORN, Mich., – Ford Motor Credit Company reported a pre-tax profit of $434 million in the second quarter of 2014, compared with $454 million a year earlier. The lower pre-tax profit was more than explained by a higher level of insurance losses from storm damage to dealer inventory. Ford Credit’s net income was
$264 million in the second quarter of 2014, compared with $275 million in the previous year.
"We have grown our receivables, maintaining our principles of prudent lending and our record of consistent profitability,” Chairman and CEO Bernard Silverstone said. "Our focus on exceptional dealer and customer service and our integrated market approach with Ford Motor Company continue to benefit the enterprise."
On June 30, 2014, Ford Credit’s total net receivables were $107 billion, compared with $100 billion at year-end 2013. Managed receivables were $111 billion on June 30, 2014, up from $103 billion on Dec. 31, 2013. On
June 30, 2014, managed leverage was 8.6:1, compared with 8.5:1 at year-end 2013.
Ford Credit now expects full-year pre-tax profit to be higher than 2013, improved from about equal to or higher than 2013. Ford Credit also now expects year-end managed receivables of $112 billion to $115 billion, up from prior guidance of about $110 billion. Ford Credit continues to expect managed leverage in the range of 8:1 to 9:1, and distributions to its parent of about $250 million.