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Ford Media Center
DEARBORN, Mich., Jan. 29, 2015 – Ford Motor Credit Company reported a pre-tax profit of $1.9 billion in 2014, its highest since 2011, up from $1.8 billion a year earlier. The improvement is more than explained by higher volume, partially offset by unfavorable lease residual performance in North America and lower financing margin. Ford Credit’s net income was $1.7 billion in 2014, compared with $1.5 billion in the previous year. The increase in net income reflects favorable tax items recorded during the year.
In the fourth quarter of 2014, Ford Credit’s pre-tax profit was $423 million, an increase of $55 million from a year ago. The improved pre-tax profit is more than explained by higher volume and favorable market valuation adjustments to derivatives. A partial offset is lower financing margin. Ford Credit reported fourth quarter net income of $411 million, compared with $568 million a year earlier. The decrease in net income was primarily driven by the nonrecurrence of favorable tax items recorded in the fourth quarter of 2013.
“Our team once again delivered a strong performance in 2014,” Chairman and CEO Bernard Silverstone said. “In 2015, with continued consistent standards, we remain focused on delivering exceptional products and services to dealers and customers, as well as strong strategic value and profits, in support of Ford’s business.”
On Dec. 31, 2014, Ford Credit’s total net receivables were $108 billion, compared with $100 billion at
year-end 2013. Managed receivables were $113 billion at year-end, up from $103 billion a year ago. Year-end managed leverage was 8.7:1, compared with 8.5:1 at year-end 2013.
For 2015, Ford Credit expects full-year pre-tax profit to be equal to or higher than 2014, year-end managed receivables of $123 billion to $128 billion, managed leverage to continue in the range of 8:1 to 9:1, and distributions to its parent of about $250 million.
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About Ford Motor Credit Company
Ford Motor Credit Company LLC has provided dealer and customer financing to support the sale of Ford Motor Company products since 1959. Ford Credit is a wholly owned subsidiary of Ford. For more information, visit www.fordcredit.com or www.lincolnafs.com.
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* The financial results discussed herein are presented on a preliminary basis; final data will be included in Ford Credit’s Annual Report on Form 10-K for the year ended Dec. 31, 2014.
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. For additional discussion, see “Item 1A, Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Ford Motor Company is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions. Ford employs approximately 203,000 people worldwide. For more information regarding Ford, its products and Ford Motor Credit Company, please visit www.corporate.ford.com.