Ford Motor Credit Earns $1.8 Billion Net Income in 2011
Ford Motor Credit Company reported net income of $1.8 billion in 2011, compared with $2 billion a year earlier. On a pre-tax basis, Ford Credit earned $2.4 billion in 2011, compared with $3.1 billion in the previous year.
DEARBORN, Mich. — Ford Motor Credit Company reported net income of $1.8 billion in 2011, compared with $2 billion a year earlier. On a pre-tax basis, Ford Credit earned $2.4 billion in 2011, compared with $3.1 billion in the previous year.
The company attributes the decrease in pre-tax earnings to fewer leases being terminated and the related vehicles sold at a gain, and lower credit loss reserve reductions, according to Ford Credit. In the fourth quarter of 2011, Ford Credit's net income was $611 million, an increase of $244 million from a year earlier.
The increase is attributed to a one-time, non-cash item recorded in the quarter related to Ford Credit's net deferred tax liability, according to the company. On a pre-tax basis, Ford Credit earned $506 million in the fourth quarter of 2011, compared with $572 million in the previous year.
"Our results in 2011 were strong, and, as planned, we provided substantial distributions to Ford," said Mike Bannister, Ford Credit chairman and CEO. "We remain committed to Ford's growth plans through support of the company, our dealers and customers."
On Dec. 31, 2011, Ford Credit's net receivables totaled $83 billion, compared with $81 billion at year-end 2010. Managed receivables were $85 billion on Dec. 31, 2011, up from $83 billion in 2010.
For full-year 2012, Ford Credit expects to be solidly profitable but at a lower level than 2011, according to the company. Ford Credit also expects to pay distributions of between $500 million and $1 billion to its parent in 2012. At year-end 2012, managed receivables are anticipated to be in the range of $85 billion to $95 billion.
For more information, visit www.fordcredit.com.
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