Ford Motor Credit Reports First Quarter 2009 Preliminary Results
DEARBORN, Mich. – Ford Motor Credit Company reported a net loss of $13 million in the first quarter of 2009, a decrease of $37 million from net income of $24 million a year earlier. On a pre-tax basis, Ford Motor Credit reported a loss of $36 million in the first quarter, compared with earnings of $32 million in the previous year.
The decrease in pre-tax earnings primarily reflected lower volume and a higher provision for credit losses, offset partially by lower depreciation expense for leased vehicles and lower net losses related to market valuation adjustments to derivatives. Lower operating costs were offset partially by other expenses, including restructuring costs.
“Like the rest of the industry, Ford Motor Credit continues to be affected by credit market constraints, reduced vehicle sales, low consumer confidence, and job contraction in difficult economic conditions,” said Mike Bannister, Ford Motor Credit chairman and CEO. “However, we continue to provide consistent levels of support to Ford Motor Company dealers and customers in the downturn through our strong business and prudent lending practices.”
On March 31, 2009, Ford Motor Credit’s on-balance sheet net receivables totaled $104 billion, compared with $116 billion at year-end 2008. Managed receivables were $106 billion on March 31, 2009, down from $118 billion on December 31, 2008. The lower receivables primarily reflected lower North America and Europe receivables, mainly due to lower industry volumes, lower dealer stocks, and the transition of Jaguar, Land Rover, and Mazda financing to other finance providers.
On March 31, 2009, managed leverage was 10 to 1. During the quarter, Ford Motor Credit used $1.1 billion of cash to purchase a portion of Ford Motor Company’s senior secured term loan debt. Ford Motor Credit distributed the term loan debt to its immediate parent, Ford Holdings LLC, whereupon it was forgiven.
Ford Motor Credit Company LLC is one of the world’s largest automotive finance companies and has supported the sale of Ford Motor Company products since 1959. Ford Motor Credit is an indirect, wholly owned subsidiary of Ford. It provides automotive financing for Ford, Lincoln, Mercury and Volvo dealers and customers. More information can be found at www.fordcredit.com and at Ford Motor Credit’s investor center, www.fordcredit.com/investorcenter.
*The financial results discussed herein are presented on a preliminary basis; final data will be included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.
Download Full Financial Release (PDF): http://media.ford.com/images/10031/1Qfinancials09FMCC.pdf
Download Slides (PDF): http://media.ford.com/images/10031/1Qfinancials09FMCCslides.pdf
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.