Ford Motor Credit increased its cash distribution to Ford Motor Co., injecting $1.1 billion into the OEM, compared with $700 million in the prior-year period, according to the company’s third-quarter earnings call.
“Cash distributions tend to track with profitability for Ford Credit, and that’s been consistent over time,” Ford Motor Co.’s Chief Financial Officer Tim Stone said during the call.
In fact, Ford Credit’s total financing revenue notched up 1.8% year over year to $3.02 billion. Specifically, floorplan financing revenue grew 3% to $534 million, operating lease revenue increased 1.4% to $1.48 billion, and retail financing remained mostly flat at $987 million.
Total finance receivables — including retail installment contracts, dealer financing and financed leases — amounted to $112.8 billion through Sept. 30.
Overall, Ford Credit boosted its earnings before taxes to $736 million in the third quarter, a 9% lift year over year.
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