Thanks to a one-time non-cash boost, Ford Motor Credit Co. posted net income of $355 million in the third quarter, up 1.4% from $350 million in the prior-year period.
On a pre-tax basis, the Ford Motor Co. captive earned $393 million in the quarter, down 32.4% from 3Q11. “The decrease in pre-tax earnings is more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin, and the non-recurrence of credit loss reserve reductions,” according to the company’s earnings release.
Still, Ford Credit is “on track for solid full-year results, and credit-loss performance continues to be in line with historical lows,” said Chairman and Chief Executive Mike Bannister.
As of Sept. 30, Ford Credit had $87 billion of managed receivables, compared with $85 billion at yearend 2011. The captive’s managed leverage was 8.0 to 1, compared with 8.3 to 1 at December 31, 2011.
For the year, Ford Credit expects pre-tax profit of about $1.6 billion and total distributions to its parent of about $600 million. Managed receivables at yearend are expected to hover in the $85-billion-to-$90-billion range.
Sounds like the management appointments had just slightly more planning involved than did Fritz’s departure. Is Reuss related to the previous Reuss in GM management…. anyone know? Lloyd Reuss was GM President in the early 1990’s and a Director at some point.