Following Ford Motor Company’s Q3 2013 earnings results, Ford Motor Credit Company — The Blue Oval’s captive finance arm — reported its own earnings for the same time period.
For the quarter, the finance division reported a pre-tax profit of $427 million compared with $393 million a year earlier. Ford Credit explains the increase as being attributed to higher sales volume in North America, with drivers of the increase volume being an increase in leasing (reflecting changes in Ford’s marketing programs) as well as higher non-consumer finance receivables due to higher dealer stocks. Ford Credit’s net income was $272 million compared to $355 million in the same time period in 2012.
“We remain solidly on track for 2013,” Ford Credit Chairman and CEO Bernard Silverstone said. “We are growing along with Ford and continue to offer a full range of financing products and the world-class services that support Ford sales, our dealers and customers.”
On September 30, 2013, Ford Credit’s total receivables were $98 billion, compared with $90 billion at year-end 2012, while managed receivables were $99 billion at September 30, 2013, up from $91 billion at year-end 2012. Managed leverage was 8.2 to 1 at September 30, 2013, compared with 8.3 to 1 at year-end 2012.
The finance arm continues to expect full year 2013 pre-tax profits to be about equal to those seen in 2012 and anticipates year-end managed receivables of about $100 billion, which is within the previously-announced range of $97 billion to $102 billion. Ford Credit also expects distributions of about $400 million, up from $200 million previously planned, reflecting a fourth quarter reduction in its tax liability.