Ford Credit Earns $388 Million in the Second Quarter, Up 16 Percent
19 July 2000
Ford Credit Earns $388 Million in the Second Quarter, Up 16 Percent
DEARBORN, Mich. - Ford Credit earned $388 million in the second quarter of
2000, up $53 million, or 16 percent, from second quarter 1999, Chairman and
Chief Executive Officer Donald A. Winkler announced today. Earnings for the
first half of 2000 total $741 million, up 17 percent from the first half of 1999.
Compared with the second quarter of 1999, the increase in earnings
reflects higher volume and improved net financing margin, offset partially by
higher operating costs associated with the restructuring of North American
operations. After-tax return on average equity for the quarter improved to
13.4 percent from 12.3 percent a year earlier.
"We are very pleased with our strong second-quarter performance. We
believe both of our milestones -- 10-percent earnings growth and improved
return on equity -- are within our reach, based on our accomplishments during
the first half of the year," Winkler said. "Our strong earnings and
breakthroughs, such as a record number of financing contracts, are the result
of hard work by our talented and dedicated employees."
Ford Credit's total net finance receivables increased to $156 billion at
June 30, compared with $135 billion in same period of the previous year.
Ford Credit is a wholly-owned subsidiary of Ford Motor Company
and is the world's largest automotive finance company. Now in its 41st year,
Ford Credit provides vehicle financing in 40 countries to more than 10 million
customers and more than 11,500 automotive dealers. Ford Credit had total
earnings of $1.3 billion in 1999, with a worldwide receivables base of more
than $140 billion.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
Second Quarter
2000 1999
Income (in Millions)
Income Before Income Taxes $632.1 $556.6
Net Income 387.7 335.3
Memo: Depreciation Expense $2,018.1 $1,954.1
Market Share
Ford Retail & Lease United States 49.8% 42.5%
Europe 33.0 32.7
Ford Wholesale United States 82.4% 83.3%
Europe 94.8 95.9
Contract Volume - New and Used
Retail/Lease (in Thousands)
United States 980 835
Europe 206 224
Other International 172 147
Total Contract Volume 1,358 1,206
Assets (in Millions)
Net Finance Receivables $119,006 $100,318
Net Investment in Operating Leases 36,977 34,643
Total Net Finance Receivables $155,983 $134,961
Other Assets 11,838 13,035
Total Assets $167,821 $147,996
Liabilities and Stockholder's Equity (in Millions)
Liabilities
Debt - Payable within one year $63,382 $69,450
Debt - Payable after one year 77,571 54,984
Total Debt $140,953 $124,434
Other Liabilities 14,710 12,144
Total Liabilities $155,663 $136,578
Minority Interests in Net Assets
of Subsidiaries 417 396
Stockholder's Equity 11,741 11,022
Total Liabilities and
Stockholder's Equity $167,821 $147,996