DEARBORN, Mich., April 26, 2011 – Ford Motor Credit Company reported net income of $451 million in the first quarter of 2011, a decrease of $77 million from a year earlier. On a pre-tax basis, Ford Credit earned $713 million in the first quarter, compared with $828 million in the previous year. The decrease in pre-tax earnings is more than explained by lower market valuation adjustments to derivatives and lower receivables volume.
"We had a solid first quarter supported by strong auction values and credit loss performance," Ford Credit Chairman and CEO Mike Bannister said. "We continue to execute the fundamentals of our business well."
On March 31, 2011, Ford Credit’s on-balance sheet net receivables totaled $83 billion, compared with $81 billion at year-end 2010. Managed receivables were $85 billion on March 31, 2011, up from $83 billion on December 31, 2010. The higher receivables were primarily due to changes in currency exchange rates.
On March 31, 2011, managed leverage was 7.0 to 1. In the first quarter of 2011, Ford Credit distributed $900 million to its parent.
For full-year 2011, Ford Credit continues to expect to be solidly profitable but at a lower level than in 2010, reflecting primarily the non-recurrence of lower lease depreciation expenses and credit loss reserve reductions of the same magnitude as 2010. At year-end 2011, managed receivables are anticipated to be in the range of $82 billion to $87 billion. Ford Credit expects to pay distributions to its parent of about $3 billion in 2011.