Ford Motor Credit Co. reported record net income of $1.8 billion in 2003, up $583 million from earnings of $1.2 billion a year earlier.

On a pre-tax basis, Ford Credit earned $3.0 billion in 2003 compared with $2.0 billion in 2002. The increase in earnings primarily reflected a lower provision for credit losses and the favorable market valuation of derivative instruments and associated exposures, partially offset by the impact of lower average net receivables.

In the fourth quarter of 2003, Ford Credit's net income was $470 million, up $116 million from $354 million in the same period a year earlier. On a pre-tax basis, Ford Credit earned $839 million in the fourth quarter of 2003 compared with $594 million in 2002. The increase in earnings primarily reflected a lower provision for credit losses, the favourable market valuation of derivative instruments and associated exposures, offset partially by lower sales of receivables.