Ford Credit Reports Increased Earnings
14 October 1998
Ford Credit Reports Increased Earnings
DEARBORN, Mich., Oct. 14 -- Ford Motor Credit Company earned
$272 million in the third quarter, Philippe Paillart, Ford Credit chairman and
chief executive officer and Financial Services Group president, announced
today. Earnings were up $14 million, or 5 percent, from 1997 third-quarter
net income of $258 million.
The increase in earnings reflects lower credit losses and higher financing
volumes offset partially by lower net financing margins. Lower net financing
margins are a result of higher depreciation expense on leased vehicles.
Earnings in the first nine months of 1998 were $850 million compared with $813
million a year ago, up $37 million or 5 percent.
Ford Credit's net finance receivables and net investment in operating
leases were at $120.1 billion on Sept. 30, compared with $113.7 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 $293 million in the third quarter
of 1998. Worldwide managed net receivables and net investment in operating
leases were $143.2 billion on Sept. 30. 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 8.5 million customers and 11,200 automotive
dealers in 36 countries.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
Third Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $467.8 $419.3
Net Income 272.4 257.7
Memo: Depreciation Expense $1791.7 $1624.1
Market Share
Ford Retail United States 50.3% 38.9%
Europe 36.0 30.6
Ford Wholesale United States 84.5% 78.7%
Europe 93.5 94.3
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 774 652
Europe 209 192
Other International 122 104
Total Contract Volume 1,105 948
Assets (in Millions)
Net Finance Receivables $84,700.6 $78,746.6
Net Investment in
Operating Leases 35,434.7 34,928.1
Total Finance Receivables $120,135.3 $113,674.7
Other Assets 6,488.0 7,324.1
Total Assets $126,623.3 $120,998.8
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Short Term $43,916.1 $42,716.8
Debt - Long Term 60,748.3 57,274.6
Total Debt $104,664.4 $99,991.4
Other Liabilities 10,875.8 10,547.5
Total Liabilities $115,540.2 $110,538.9
Minority Interests in Net
Assets of Subsidiaries 387.1 352.9
Preferred Equity in
Subsidiary Company 0.0 286.5
Stockholder's Equity 10,696.0 9,820.5
Total Liabilities and
Stockholder's Equity $126,623.3 $120,998.8
Memo:
Selected Worldwide Results for Managed Operations *
Third Quarter
1998 1997
Income (in Millions)
Income Before Income Taxes $485 $435
Net Income 293 283
Contract Volume - New and Used
Retail/Lease (in Thousands) 1,144 1,022
Managed Net Finance Receivables and
Net Investment in Operating
Leases (in Millions)* $143,167 $127,772
* Managed Receivables include certain finance receivables Ford Credit has
sold and continues to service.