Ford Credit Reports 1997 Second-Quarter Earnings
16 July 1997
Ford Credit Reports 1997 Second-Quarter Earnings
DEARBORN, Mich., July 16 -- Ford Motor Credit Company's
second-quarter net income was $279 million, Chairman Ken Whipple and President
Edsel B. Ford II announced today. Earnings were up from the first quarter,
but $97 million lower than 1996's second-quarter net income of $376 million.
Compared with the second quarter of 1996, the reduction in earnings
reflected higher credit losses and lower net financing margins, partially
offset by higher financing volumes. Credit losses improved from the first
quarter, but were higher than the same period in 1996. Lower net financing
margins resulted from higher depreciation expenses on leased vehicles. Ford
Credit's total finance receivables increased to $113.5 billion on June 30,
compared with $109.9 billion a year earlier.
Ford Credit's 1997 financial results include a majority ownership (78
percent) of Ford Credit Europe and results for 1996 have been restated to
reflect this ownership change. Ford Credit is an indirect wholly owned
subsidiary of Ford Motor Company and is part of Ford's Financial
Services Group.
Consolidated financial statements exclude certain vehicle finance
subsidiaries of Ford Motor Company that are managed by Ford Credit. Ford
Credit's worldwide managed operations earned $312 million for the second
quarter of 1997. Worldwide managed finance receivables were $128 billion at
June 30, 1997. Included in these managed receivables are certain finance
receivables Ford Credit has sold and continues to service.
As the world's largest company dedicated to automotive finance, Ford
Credit provides vehicle financing for 11,000 automotive dealers and 8 million
retail customers in 33 countries.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
Second Quarter
1997 1996
Income Before Income Taxes $488.3 $607.0
Net Income 279.0 376.0
Market Share
Ford Retail United States 36.6% 40.8%
Europe 28.8 27.9
Ford Wholesale United States 79.4% 81.0%
Europe 95.1 91.0
United States 676 786
Europe 192 186
Other International 117 84
Total Contract Volume 985 1,056
Net Finance Receivables $78,914.5 $81,454.8
Net Investment in
Operating Leases 34,579.1 28,402.1
Subtotal $113,493.6 $109,856.9
Other Assets 7,408.5 7,336.8
Total Assets $120,902.1 $117,193.7
Liabilities
Debt - Short Term $43,447.9 $42,873.6
Debt - Long Term 56,877.7 53,052.5
Total Debt $100,325.6 $95,926.1
Other Liabilities 10,327.9 10,764.5
Total Liabilities $110,653.5 $106,690.6
Minority Interests in Net
Assets of Subsidiaries 354.0 1,233.0
Preferred Equity in
Subsidiary Company 286.5 284.5
Stockholder's Equity 9,608.1 8,985.6
Total Liabilities and
Stockholder's Equity $120,902.1 $117,193.7
Memo:
Selected Worldwide Results for Managed Operations *
1997 1996
Income Before Income Taxes $479 $580
Net Income 312 359
1,045 1,101
Managed Net Finance Receivables
and Net Investment in Operating
Leases (in Millions) * $128,042 $121,912
* Managed Receivables include certain finance receivables Ford Credit has
sold and continues to service.
SOURCE Ford Motor Credit Company