DEARBORN – Ford Motor Credit Company reported a pre-tax profit of $427 million in the third quarter of 2013, compared with $393 million a year earlier. The increase in pre-tax earnings is more than explained by higher volume in North America. The drivers of higher volume were an increase in leasing, reflecting changes in Ford’s marketing programs, as well as higher non-consumer finance receivables due to higher dealer stocks.
Ford Credit’s net income was $272 million in the third quarter, compared with $355 million in the previous year.
“We remain solidly on track for 2013,” Ford Credit Chairman and CEO Bernard Silverstone said. “We are growing along with Ford and continue to offer a full range of financing products and the world-class services that support Ford sales, our dealers and customers.”
On September 30, 2013, Ford Credit’s total receivables were $98 billion, compared with $90 billion at year-end 2012. Managed receivables were $99 billion at September 30, 2013, up from $91 billion at year-end 2012. Managed leverage was 8.2 to 1 at September 30, 2013, compared with 8.3 to 1 at year-end 2012.
Ford Credit continues to expect full year 2013 pre-tax profits to be about equal to 2012. Ford Credit now expects year-end managed receivables of about $100 billion, which is within the prior range of $97 billion to $102 billion, and distributions of about $400 million, up from $200 million previously planned, reflecting a fourth quarter reduction in Ford Credit’s tax liability.