Ford Credit Earns Full-Year 2014 Pre-Tax Profit of $1.9 Billion; Net Income of $1.7 Billion

DEARBORN, MI -- January 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.

“Our team once again delivered a strong performance in 2014”

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.