Ford Credit Reports 1997 Earnings
27 January 1998
Ford Credit Reports 1997 Earnings
DEARBORN, Mich., Jan. 27 -- Ford Motor Credit Company's 1997
net income was $1.031 billion, Chairman Ken Whipple and President
Edsel B. Ford II announced today. Earnings were $410 million lower than
1996's net income of $1.441 billion.
Compared with 1996, the reduction in earnings reflected lower net
financing margins, higher credit losses and higher taxes, partially offset by
improved operating costs and higher financing volumes. Lower net financing
margins resulted from higher depreciation expenses on leased vehicles.
Ford Credit's total finance receivables increased to $116.1 billion at
Dec. 31, compared with $111.5 billion a year earlier.
Consolidated financial statements exclude certain vehicle financing
subsidiaries of Ford Motor Company that are managed by Ford Credit. Ford
Credit's worldwide managed operations earned $1.078 billion for 1997.
Worldwide managed finance receivables were $133 billion at Dec. 31. Included
in these managed receivables are certain finance receivables Ford Credit has
sold and continues to service.
Ford Credit is a wholly owned subsidiary of Ford Motor Company .
As the world's largest company dedicated to automotive finance, Ford Credit
provides vehicle financing for 11,400 automotive dealers and 8 million retail
customers in 35 countries.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
Full Year
1997 1996
Income (in Millions)
Income Before Income Taxes $1,806.0 $2,240.2
Net Income 1,030.8 1,440.6
Market Share
Ford Retail & Retail Lease
United States 37.5% 37.6%
Europe 29.1 29.3
Ford Wholesale
United States 79.8% 79.4%
Europe 95.0 90.8
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 2,549 2,652
Europe 727 717
Other International 417 302
Total Contract Volume 3,693 3,671
Assets (in Millions)
Net Finance Receivables $81,312.6 $80,848.0
Net Investment in
Operating Leases 34,746.0 30,645.2
Total Finance Receivables $116,058.6 $111,493.2
Other Assets 5,914.7 10,203.2
Total Assets $121,973.3 $121,696.4
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Short Term $46,207.8 $43,017.0
Debt - Long Term 54,517.2 55,007.3
Total Debt $100,725.0 $98,024.3
Other Liabilities 11,186.1 12,868.1
Total Liabilities $111,911.1 $110,892.4
Minority Interests in Net Assets
of Subsidiaries 477.7 1,313.8
Preferred Equity in Subsidiary Company - 286.5
Stockholder's Equity 9,584.5 9,203.7
Total Liabilities and
Stockholder's Equity $121,973.3 $121,696.4
Memo:
Selected Worldwide Results for Managed Operations *
Full Year
1997 1996
Income (in Millions)
Income Before Income Taxes $1,815 $2,125
Net Income 1,078 1,353
Contract Volume - New and Used
Retail/Lease (in Thousands) 3,941 3,902
Managed Net Finance Receivables and
Net Investment in
Operating Leases (in Millions)* $133,030 $126,455
* Managed Receivables include certain finance receivables Ford Credit has
sold and continues to service.
SOURCE Ford Motor Credit Company