DEARBORN, MI – Ford Motor Credit Company reported net income of $710 million in the first quarter of 2005, up $22 million from earnings of $688 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $1,061 million in the first quarter, compared with $1,047 million in the previous year. The increase in earnings primarily reflected improved credit loss performance, offset partially by the impact of lower receivable levels and higher borrowing costs.
“Our strong results this quarter, aided by lower credit losses, reflect our ongoing commitment to strengthening our operations,” said Mike Bannister, chairman and CEO. “We will continue to support Ford Motor Company with solid profits and dividends in 2005.”
On March 31, 2005, Ford Motor Credit’s on-balance sheet net receivables totaled $125 billion, compared with $133 billion on December 31, 2004. Managed receivables were $165 billion on March 31, down from $168 billion on December 31. The lower managed receivables primarily reflected lower retail and lease placement volumes and the impact of receivables sold in a whole-loan sale transaction during the first quarter of 2005.
Ford Motor Credit paid cash dividends of $450 million during the quarter. On March 31, managed leverage was 13.0 to 1.
Ford Motor Credit Company is one of the world’s largest automotive finance companies and has supported the sale of Ford products since 1959. With more than 17,000 employees, Ford Motor Credit has operations in 36 countries and manages $165 billion in receivables. Ford Motor Credit is an indirect, wholly owned subsidiary of Ford Motor Company.
