Ford Credit Reports First-Quarter 1998 Earnings
16 April 1998
Ford Credit Reports First-Quarter 1998 Earnings
DEARBORN, Mich., April 16 -- Ford Motor Credit Company earned
$278 million in the first quarter this year, Chairman Ken Whipple and
President Edsel B. Ford II announced today. Earnings were two million dollars
higher than 1997 first-quarter net income of $276 million.
Compared with the first quarter of 1997, the earnings reflected improved
portfolio yields, lower borrowing costs and higher financing volumes, offset
by higher depreciation expense on leased vehicles. Higher depreciation
expense on leased vehicles is expected to adversely affect Ford Credit's
earnings for the remainder of 1998.
Ford Credit's net finance receivables and net investment in operating
leases increased to $117.6 billion at March 31, compared with $111.1 billion a
year earlier.
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 $283 million for the first
quarter of 1998. Worldwide managed net receivables and net investment in
operating leases were $134.1 billion at March 31, 1998. Included in these
managed receivables are certain finance receivables Ford Credit has sold and
continues to service.
As the world's largest automotive finance company, Ford Credit provides
vehicle financing for more than 11,000 automotive dealers and more than
8 million retail customers in 35 countries.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
First Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $ 489.2 $ 473.8
Net Income 277.8 275.9
Memo: Depreciation Expense 1,682.0 1,445.5
Market Share
Ford Retail United States 38.3 % 38.9 %
Europe 26.3 24.6
Ford Wholesale United States 79.5 % 77.4 %
Europe 94.9 94.0
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 627 637
Europe 192 166
Other International 99 88
Total Contract Volume 918 891
Assets (in Millions)
Net Finance Receivables $ 82,335.8 $ 78,436.6
Net Investment in Operating Leases 35,299.1 32,660.5
Total Net Finance Receivables $ 117,634.9 $ 111,097.1
Other Assets 6,897.6 8,724.8
Total Assets $ 124,532.5 $ 119,821.9
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Short Term $ 58,913.1 $ 53,634.8
Debt - Long Term 45,367.2 44,320.3
Total Debt $ 104,280.3 $ 97,955.1
Other Liabilities 9,878.0 11,921.6
Total Liabilities $ 114,158.3 $ 109,876.7
Minority Interests in Net Assets
of Subsidiaries 497.8 336.2
Preferred Equity in Subsidiary Company - 286.5
Stockholder's Equity 9,876.4 9,322.5
Total Liabilities and
Stockholder's Equity $ 124,532.5 $ 119,821.9
Memo:
Selected Worldwide Results for
Managed Operations* First Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $ 494 $ 468
Net Income 283 279
Contract Volume - New and Used
Retail/Lease (in Thousands) 969 939
Managed Net Finance Receivables and
Net Investment in Operating
Leases (in Millions)* $ 134,062 $ 124,901
* Managed Receivables include certain finance receivables Ford Credit has
sold and continues to service.
SOURCE Ford Motor Credit Company