FOR IMMEDIATE RELEASE
FORD MOTOR CREDIT EARNS $441 MILLION IN THE
SECOND QUARTER
DEARBORN, Mich., July 20, 2006 – Ford Motor Credit Company reported net income of
$441 million in the second quarter of 2006, down $299 million from earnings of $740 million a year
earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $656 million in the
second quarter, compared with $1.2 billion in the previous year. The decrease in earnings primarily
reflected higher borrowing costs, the impact of lower average receivable levels, lower credit loss
reserve reductions and higher depreciation expense.
"Our sustained focus on strong business fundamentals has generated high-quality assets and solid
results," said Mike Bannister, chairman and CEO. "We continue to support Ford Motor Company with
profits and dividends."
On June 30, Ford Motor Credit's on-balance sheet net receivables totaled $136 billion, compared
with $132 billion on December 31, 2005. Managed receivables were $151 billion, compared with
$150 billion on December 31.
Ford Motor Credit paid dividends of $400 million during the quarter. On June 30, managed leverage
was 11.5 to 1.
Ford Motor Credit Company is one of the world's largest automotive finance companies and
has supported the sale of Ford products since 1959. With about 14,000 employees, Ford Motor
Credit operates in 36 countries and manages approximately $151 billion in receivables. Ford
Motor Credit is an indirect, wholly owned subsidiary of Ford Motor Company. It provides
automotive financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land Rover, Mazda and
Volvo dealers and customers. More information can be found at http://www.fordcredit.com and
at Ford Motor Credit's investor center, http://www.fordcredit.com/investorcenter/.
###
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended June 30, 2006 and 2005
(in millions)
Financing revenue
Operating leases
Retail
Interest supplements and other support costs earned
from affiliated companies
Wholesale
Other
Total financing revenue
Depreciation on vehicles subject to operating leases
Interest expense
Net financing margin
Other revenue
Investment and other income related to sales
of receivables
Insurance premiums earned, net
Other income
Total financing margin and other revenue
Expenses
Operating expenses
Provision for credit losses
Insurance expenses
Total expenses
Income from continuing operations before income taxes
Provision for income taxes
Income from continuing operations before minority interests
Minority interests in net income of subsidiaries
Income from continuing operations
Income from discontinued operations
Gain on disposal of discontinued operations
Net income
Second Quarter
2006
2005
(Unaudited)
$ 1,370
925
$
$ 1,339
1,012
First Half
2006
2005
(Unaudited)
$ 2,700
1,832
$ 2,697
2,082
806
642
56
3,799
(1,264)
(1,826)
709
795
276
55
3,477
(1,095)
(1,386)
996
1,582
1,241
110
7,465
(2,445)
(3,503)
1,517
1,638
527
111
7,055
(2,172)
(2,812)
2,071
190
51
264
1,214
443
52
143
1,634
400
102
501
2,520
888
104
313
3,376
490
4
64
558
656
215
441
—
441
—
—
441
522
(111)
61
472
1,162
426
736
—
736
—
4
$ 740
1,009
(2)
106
1,113
1,407
487
920
—
920
—
—
$ 920
1,050
6
97
1,153
2,223
813
1,410
1
1,409
37
4
$ 1,450
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
ASSETS
Cash and cash equivalents
Marketable securities
Finance receivables, net
Net investment in operating leases
Retained interest in securitized assets
Notes and accounts receivable from affiliated companies
Derivative financial instruments
Other assets
Total assets
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable
Customer deposits, dealer reserves and other
Affiliated companies
Total accounts payable
Debt
Deferred income taxes, net
Derivative financial instruments
Other liabilities and deferred income
Total liabilities
June 30,
2006
(Unaudited)
$
$
$
Minority interests in net assets of subsidiaries
Stockholder's equity
Capital stock, par value $100 a share, 250,000 shares
authorized, issued and outstanding
Paid-in surplus (contributions by stockholder)
Accumulated other comprehensive income
Retained earnings
Total stockholder's equity
Total liabilities and stockholder's equity
$
13,010
3,712
110,847
25,345
1,150
830
1,564
5,808
162,266
1,869
1,052
2,921
133,717
8,826
882
4,560
150,906
December 31,
2005
$
$
$
14,798
3,810
109,876
22,213
1,420
1,235
2,547
6,256
162,155
1,890
794
2,684
134,500
8,772
680
4,781
151,417
3
3
25
5,117
737
5,478
11,357
162,266
25
5,117
385
5,208
10,735
162,155
$
Prior year amounts have been revised to reflect a reclassification between Cash and cash equivalents
and Marketable securities as of December 31, 2005.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
OPERATING HIGHLIGHTS*
Second Quarter
2006
2005
Financing Shares
United States
Financing share – Ford, Lincoln and Mercury
Retail installment and lease
Wholesale
Europe
Financing share – Ford
Retail installment and lease
Wholesale
2006
First Half
2005
45%
79
40%
81
44%
80
41%
81
25%
95
29%
97
25%
95
28%
97
Contract Volume – New and used retail/lease (in thousands)
North America segment
United States
Canada
Total North America segment
443
56
499
424
51
475
841
91
932
834
82
916
International segment
Europe
Other international
Total International segment
Total contract volume
182
56
238
737
206
65
271
746
367
121
488
1,420
392
138
530
1,446
Borrowing Cost Rate**
5.5%
4.4%
Charge-offs (in millions)
On-Balance Sheet Receivables
Retail installment & lease
Wholesale
Other
Total charge-offs – on-balance sheet receivables
$
$
Total loss-to-receivables ratio
Managed Receivables***
Retail installment & lease
Wholesale
Other
Total charge-offs – managed receivables
Total loss-to-receivables ratio
—————
64
19
0
83
$
$
0.25%
$
$
83
19
0
102
0.27%
*
Continuing operations
** On-balance sheet debt, includes the effect of interest rate swap agreements
*** See appendix for additional information
140
(1)
(2)
137
5.2%
$
$
0.44%
$
$
172
(1)
(2)
169
0.41%
175
19
0
194
4.2%
$
$
0.29%
$
$
219
19
0
238
0.32%
307
16
(5)
318
0.50%
$
$
387
16
(5)
398
0.48%
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
APPENDIX
In evaluating Ford Motor Credit's financial performance, Ford Motor Credit management uses financial statements and other
financial measures in accordance with Generally Accepted Accounting Principles (GAAP). Included below are brief definitions
of key terms, information about the impact of on-balance sheet securitization and a reconciliation of other measures.
KEY TERMS:
• Managed receivables: receivables reported on Ford Motor Credit's balance sheet and receivables Ford Motor Credit sold in off•
balance sheet securitizations and continues to service
Charge-offs on managed receivables: charge-offs associated with receivables reported on Ford Motor Credit's balance sheet and
charge-offs associated with receivables that Ford Motor Credit sold in off-balance sheet securitizations and continues to service
IMPACT OF ON-BALANCE SHEET SECURITIZATION: finance receivables (retail and wholesale) and investments in operating leases
reported on Ford Motor Credit's balance sheet include assets transferred in securitizations that do not qualify for accounting sale treatment.
These assets have been legally transferred to Ford Motor Credit sponsored special purpose entities and are available only to pay the
obligations of the special purpose entities and are not available to pay the other obligations of Ford Motor Credit or the claims of Ford Motor
Credit's other creditors. Debt reported on Ford Motor Credit's balance sheet includes debt issued by these special purpose entities to
securitization investors which is payable out of collections on the assets supporting the securitizations and is not the legal obligation of Ford
Motor Credit or its other subsidiaries.
RECONCILIATION OF MEASURES:
Managed Leverage Calculation
June 30,
2006
Total debt
Securitized off-balance sheet receivables outstanding
Retained interest in securitized off-balance sheet receivables
Adjustments for cash and cash equivalents, and marketable securities *
Fair value hedge accounting adjustments
Total adjusted debt
$
Total stockholder's equity (including minority interest)
Fair value hedge accounting adjustments
Total adjusted equity
$
$
$
Managed leverage (to 1) = adjusted debt / adjusted equity
Memo: Financial statement leverage (to 1) = total debt / stockholder's equity
Net Finance Receivables and Operating Leases
June 30, 2006
Retail installment
Wholesale
Other finance receivables
Net investment in operating leases
Total net finance receivables and operating leases
December 31, 2005
Retail installment
Wholesale
Other finance receivables
Net investment in operating leases
Total net finance receivables and operating leases
—————
*
Excluding marketable securities related to insurance activities
$
$
$
11.4
(0.1)
11.3
$
$
11.5
11.8
On-Balance
Sheet
$
December 31,
2005
(in billions)
133.7
$
134.5
14.6
18.0
(1.1)
(1.4)
(16.0)
(17.9)
(0.7)
(1.6)
130.5
$
131.6
66.5
39.9
4.5
25.3
136.2
65.7
39.6
4.6
22.2
132.1
12.3
12.5
Managed Receivables
Off-Balance
Sheet
(in billions)
$
14.6
$
—
—
—
$
14.6
$
$
$
18.0
—
—
—
18.0
10.7
(0.0)
10.7
$
$
Total
81.1
39.9
4.5
25.3
150.8
83.7
39.6
4.6
22.2
150.1