DEARBORN, Mich. -- Ford Motor Credit Co. reported net income of $2.5 billion in 2005, down $370 million from earnings of $2.9 billion a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $3.9 billion in 2005, down $570 million from 2004.
In the fourth quarter of 2005, Ford Motor Credit's net income was $465 million, down $78 million from a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $737 million in the fourth quarter, compared with $859 million in the previous year.
The decrease in full year and fourth quarter earnings primarily reflected higher borrowing costs and the impact of lower retail receivable levels, offset partially by improved credit loss performance.
"We had a strong year in 2005, producing earnings second only to our record results of 2004," said Mike Bannister, chairman and CEO. "In 2006, we expect our results to moderate."
On Dec. 31, 2005, Ford Motor Credit's on-balance sheet net receivables totaled $132 billion, compared with $133 billion at year-end 2004. Managed receivables were $150 billion, down from $168 billion a year ago. The lower receivables primarily reflected lower retail placement volumes.
Ford Motor Credit paid dividends of $2.75 billion in 2005. On
Dec. 31, managed leverage was 12.3 to 1.
