Ford Credit Reports Second Quarter Pre-tax Profit of $454 Million; Net Income of $275 Million
DEARBORN, Mich., July 24, 2013 -- Ford Motor Credit Company reported a pre-tax profit of $454 million in the second quarter of 2013, compared with $438 million a year earlier. The increase in pre-tax earnings is more than explained by higher receivables and financing margin, offset partially by lower credit loss reserve reductions. Ford Credit's net income was $275 million in the second quarter, compared with $296 million in the previous year.
"We are pleased with our second quarter results and our continuing receivables growth," Ford Credit Chairman and CEO Bernard Silverstone said. "Our focused support of Ford, our customers and dealers continues to benefit the enterprise."
On June 30, 2013, Ford Credit's net receivables totaled $94 billion, compared with $90 billion at year-end 2012. Managed receivables were $95 billion at June 30, 2013, up from $91 billion at year-end 2012. Managed leverage was 8.3:1 at June 30, 2013, unchanged from year-end 2012.
Ford Credit continues to expect full year 2013 pre-tax profits to be about equal to 2012 and planned distributions of about $200 million for the year. Ford Credit now expects year-end managed receivables in the range of $97 billion to $102 billion, which is within the prior range of $95 billion to $105 billion.