DEARBORN, Mich. — Ford Motor Credit reported net income of $427 million in the third quarter, an increase of $332 million from earnings of $95 million a year earlier. On a pre-tax basis, Ford Credit earned $677 million in the third quarter, compared with $161 million in the previous year. For the first nine months of 2009, the company earned $1.3 billion on a pre-tax basis.
The increase in pre-tax earnings primarily reflected lower residual losses due to higher auction values and lower provisions for credit losses, offset partially by lower volume.
Ford Credit earned net income of $827 million in the first nine months of the year, an increase from a net loss of $1.3 billion in 2008.
“We always adapt our operations to changing business conditions and had the additional benefit in the third quarter of improved used vehicle auction markets. We continue to profitably support Ford Motor Company sales,” Chairman and CEO Mike Bannister said.
Ford Credit expects to be profitable in the fourth quarter and end the year with managed receivables between $90 billion and $95 billion. Ford Credit expects reduced profits in 2010 based on lower average receivables and non-recurrence of favorable 2009 factors.
