Ford Motor Credit Co. reported earnings of $1.23 billion in 2002, up $395 million from earnings of $839 million a year earlier. After-tax financial statement return on average equity was 9 percent in 2002, compared with 7 percent in 2001.

Excluding unusual charges and adjustments related to SFAS No. 133 (Accounting for Derivative Instruments and Hedging Activities), Ford Credit earned $1.38 billion, up $175 million from earnings of $1.2 billion in 2001. The increase in earnings primarily reflected a lower provision for credit losses, offset partially by the net unfavorable impact of receivable sales and lower net financing margins.

In the fourth quarter of 2002, Ford Credit earned $354 million, up $651 million from a loss of $297 million in the same period a year earlier. Excluding unusual charges and adjustments related to SFAS No. 133, Ford Credit earned $382 million in the fourth quarter of 2002, up $376 million from earnings of $6 million in the same period a year earlier.

The improvement reflected a lower provision for credit losses and the net favorable impact of receivable sales, offset partially by lower net financing margins. Ford Credit paid a dividend to Ford Motor Company of $700 million in December. For the full year, Ford Credit's dividend, net of the January 2002 capital contribution, was $450 million.

"I'm proud of our solid performance in a difficult year," said Greg Smith, chairman and CEO. "Ford Credit delivered improved profits, as well as strong customer satisfaction and owner loyalty. In addition, we reduced leverage, continued to diversify funding sources and paid a net dividend to Ford Motor Company," Smith added.

On Dec. 31, 2002, Ford Credit's owned receivables totaled $129 billion, down $9 billion compared with $138 billion on September 30, 2002, and down $18 billion compared with $147 billion on December 31, 2001. These reductions primarily reflected the higher sales of receivables in securitizations and whole-loan transactions.

Managed receivables, which includes both owned receivables and receivables sold in securitizations, were $200 billion on Dec. 31, 2002, compared with $204 billion on Sept. 30, 2002, and $206 billion on Dec. 31, 2001.

During the fourth quarter of 2002, Ford Credit also sold $5 billion of receivables through whole-loan sales transactions.

Parent Company Losses Down in 2002

Ford Motor Co. on Jan. 21 reported a net loss, including unusual items and results from discontinued operations, of $980 million, or 55 cents per share, for full-year 2002.

In 2001, Ford reported a net loss of $5.45 billion, or $3.02 per share.

Ford did, however, make an operating profit of $872 million, or 47 cents per share, in 2002, excluding various charges, the sale of Kwik-Fit, restructuring actions and other unusual items not related to results from discontinued operations.

Revenue for 2002 was $162.6 billion, up about 1 percent from $160.8 billion a year ago. Vehicle unit sales were 6,980,000, compared with 7,008,000 in 2001.

"In the first year of our turnaround, Ford improved its operating results by about $1.7 billion," said chairman and CEO Bill Ford. "Our earnings performance demonstrates that we are making solid progress toward the goals outlined in our revitalisation plan. In 2002, we exceeded nearly all our commitments and are on track to reach our mid-decade target of an annual $7 billion pre-tax operating profit."

About Ford Credit

Ford Credit is a wholly owned subsidiary of Ford Motor Co., and is the world's largest automotive finance company.

Now in its 44th year, Ford Credit provides vehicle financing in 36 countries to more than 11 million customers and more than 12,500 automotive dealers.

More information can be found at www.fordcredit.com and at Ford Credit's investor center, www.fordcredit.com/investorcenter/.