Ford Credit Reports Second-Quarter 1998 Earnings
15 July 1998
Ford Credit Reports Second-Quarter 1998 Earnings
DEARBORN, Mich., July 15 -- Ford Motor Credit Company earned
$300 million in the second quarter this year, Chairman and CEO Ken Whipple
announced today. Earnings were up $21 million or 7 percent from 1997 second-
quarter net income of $279 million.
The increase in earnings reflects higher portfolio yields, and volume
improvements in most areas around the world resulting in higher finance
receivables. Credit loss reserve requirements were lower because of improved
credit loss ratios. These factors were offset partially by higher
depreciation expense on leased vehicles.
"In the second quarter, we reached the highest number ever of contracts
outstanding in North America - more than five million; our credit loss ratios
improved because of a lower number of repossessions; and as part of our
continuing global expansion, we entered another country, Colombia," said
Whipple, who also is president of Ford Financial Services and a Ford Motor
Company executive vice president.
Ford Credit's net finance receivables and net investment in operating
leases increased to $121.1 billion at June 30, compared with $113.5 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 $328 million for the second
quarter of 1998. Worldwide managed net receivables and net investment in
operating leases were $140.3 billion at June 30, 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 11,450 automotive dealers and more than
8.5 million retail customers in 36 countries.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
Second Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $ 503.9 $ 488.3
Net Income 299.8 279.0
Memo: Depreciation Expense $ 1,841.2 $ 1,467.8
Market Share
Ford Retail United States 38.6 % 36.6 %
Europe 30.5 28.8
Ford Wholesale United States 78.3 % 79.4 %
Europe 96.5 95.1
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 742 676
Europe 198 192
Other International 130 117
Total Contract Volume 1,070 985
Assets (in Millions)
Net Finance Receivables $ 84,836.4 $ 78,914.5
Net Investment in Operating
Leases 36,240.9 34,579.1
Subtotal $ 121,077.3 $ 113,493.6
Other Assets 7,141.7 7,408.5
Total Assets $ 128,219.0 $ 120,902.1
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Short Term $ 47,613.3 $ 43,447.9
Debt - Long Term 59,292.3 56,877.7
Total Debt $ 106,905.6 $ 100,325.6
Other Liabilities 10,543.7 10,327.9
Total Liabilities $ 117,449.3 $ 110,653.5
Minority Interests in Net Assets
of Subsidiaries 357.1 354.0
Preferred Equity in Subsidiary
Company - 286.5
Stockholder's Equity 10,412.6 9,608.1
Total Liabilities and
Stockholder's Equity $ 128,219.0 $ 120,902.1
Memo:
Selected Worldwide Results for Managed
Operations * Second Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $ 510 $ 504
Net Income 328 306
Contract Volume - New and Used
Retail/Lease (in Thousands) 1,117 1,046
Managed Net Finance Receivables and
Net Investment in Operating Leases
(in Millions) * $ 140,302 $ 128,042
* Managed Receivables include certain finance receivables Ford Credit has
sold and continues to service.