Ford Motor Credit ended 2014 with favorable earnings and a pre-tax profit of $1.9 billion for 2014. Profits for the year ending December 31 were up $0.1 billion from $1.8 billion in 2013. Net income for the company was $1.7 billion, up from $1.5 billion the previous year.
During the fourth quarter of 2014, pre-tax profits totaled $423 million, up $55 million from the year-ago quarter. The company credited higher volume, offset by lower lease residuals for the boost in profits. While profits saw gains, Ford Motor Credit saw a decline in its fourth quarter income to $411 million, a sharp fall from $568 million reported during the fourth quarter of 2013.
Ford Motor Credit blamed the loss of favorable tax items recorded in the year-ago quarter for the drop in income. Also reported during the fourth quarter was a boost in net receivables. Ford Motor Credit posted total net receivables at $108 billion, up from $100 billion reported during the fourth quarter of 2013.
In spite of strong earnings in its finance unit, Ford Motor Company saw a decline in its 2014 full -year pre-tax profit to $6.3 billion, a $2.3 billion fall from pre-tax profits reported in 2013. During the fourth quarter of 2014, pre-tax profits fell to $1.1 billion for the automaker, down $197 million from the comparable quarter in 2013.
