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Ford Credit earned $376 million in the third quarter of 2001, with earnings for the first nine months of 2001 totaling $1.14 billion.
Excluding adjustments related to SFAS 133 (Accounting for Derivative Instruments and Hedging Activities), Ford Credit earned $389 million, up 1 percent from third quarter 2000 earnings of $386 million.
According to Ford Credit, the $3 million earnings increase (excluding SFAS 133) reflects primarily higher investment and other income related to securitization, offset by higher provisions for credit losses.
Compared with the same period a year ago, gains-on-sale of receivables are higher, reflecting Ford Credit's increased use of securitization as a cost-effective source of funds coupled with a falling rate environment. The increase in the provision for credit losses reflects weakening economic conditions.
After-tax return on average equity was 12.1 percent in the third quarter of 2001, compared with 12.9 percent in the same period a year earlier. Excluding SFAS 133, earnings for the first nine months of 2001 totaled $1.19 billion, up 6 percent from the first nine months of 2000.
"Our results reflect our steadfast commitment to provide best-in-class service to consumers and to our dealer-partners and our actions to be prepared for challenging times," said Ford Credit Chairman and CEO Donald A. Winkler.
Ford Credit's total net finance receivables at Sept. 30, 2001 were $150 billion, compared with $157 billion in the same period of the previous year, reflecting higher securitization activity. Managed assets were $202 billion, compared with $180 billion at Sept. 30, 2000.
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 42nd year, Ford Credit provides vehicle financing in 40 countries to more than 10 million customers and more than 12,500 automotive dealers.
More information about Ford Credit can be found at www.fordcredit.com.
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