Contact:
Christine Solie
313-845-1746
csolie@ford.com
FOR IMMEDIATE RELEASE
FORD MOTOR CREDIT EARNS RECORD $2.9 BILLION IN 2004
Fourth Quarter Earnings of $543 Million Reported
DEARBORN, Mich., January 20, 2005 – Ford Motor Credit Company reported record net income of
$2.9 billion in 2004, up $1.1 billion from earnings of $1.8 billion a year earlier. On a pre-tax basis from
continuing operations, Ford Motor Credit earned $4.4 billion in 2004, compared with $3.0 billion in the
previous year. The increase in earnings primarily reflected improved credit loss performance and leasing
results.
In the fourth quarter of 2004, Ford Motor Credit's net income was $543 million, up $73 million from
$470 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned
$859 million in the fourth quarter, compared with $794 million in the previous year. The increase in earnings
primarily reflected improved credit loss performance.
"Thanks to good progress on a number of key business drivers, especially credit loss and lease residual
performance, we posted record earnings for the second consecutive year," said Mike Bannister, chairman and
CEO. "We expect to generate strong earnings in 2005; however, the record pace of 2004 will not continue."
On December 31, 2004, Ford Motor Credit's on-balance sheet receivables totaled $133 billion, compared with
$128 billion on December 31, 2003. Managed receivables were $168 billion, down $7 billion from
$175 billion in 2003, primarily reflecting lower retail and operating lease financing.
Ford Motor Credit paid dividends of $900 million during the fourth quarter and $4.3 billion for the full year.
On December 31, managed leverage was 13.7 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 more than 16,000 employees, Ford Motor Credit operates in
36 countries and manages $168 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
(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 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/held-for-sale operations
Loss on disposal of discontinued/held-for-sale operations
Net income
Fourth Quarter
2003
2004
(Unaudited)
$ 1,410
1,154
$
$ 1,638
1,062
Full Year
2004
2003
(Unaudited)
$ 5,880
4,459
$ 7,423
4,296
769
266
37
3,636
(1,227)
(1,371)
1,038
799
206
51
3,756
(1,444)
(1,403)
909
3,285
871
200
14,695
(4,909)
(5,333)
4,453
3,347
797
247
16,110
(7,009)
(5,831)
3,270
420
49
245
1,752
575
53
371
1,908
1,930
216
1,041
7,640
2,611
232
1,137
7,250
575
298
20
893
859
334
525
1
524
19
543
589
493
32
1,114
794
299
495
495
30
(55)
$
470
2,142
900
167
3,209
4,431
1,648
2,783
2
2,781
81
$ 2,862
2,195
1,888
211
4,294
2,956
1,134
1,822
2
1,820
52
(55)
$ 1,817
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
ASSETS
Cash and cash equivalents
Investments in securities
Finance receivables, net
Net investment in operating leases
Retained interest in securitized assets
Notes and accounts receivable from affiliated companies
Derivative financial instruments
Assets of discontinued/held-for-sale operations
Other assets
Total assets
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Accounts payable
Trade, customer deposits, and dealer reserves
Affiliated companies
Total accounts payable
Debt
Deferred income taxes, net
Derivative financial instruments
Liabilities of discontinued/held-for-sale operations
Other liabilities and deferred income
Total liabilities
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
December 31,
2004
2003
(Unaudited)
$ 12,668
653
110,851
21,866
9,166
1,780
6,930
2,186
6,521
$ 172,621
$ 15,698
611
105,376
23,164
12,569
1,983
9,842
1,810
8,082
$ 179,135
$
$
1,645
819
2,464
144,274
7,593
911
93
5,802
161,137
1,534
1,258
2,792
149,652
6,352
1,293
82
6,471
166,642
13
19
25
5,117
855
5,474
11,471
$ 172,621
25
5,117
420
6,912
12,474
$ 179,135
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
OPERATING HIGHLIGHTS*
Financing Shares
United States
Financing share – Ford, Lincoln and Mercury
Retail installment and lease
Wholesale
Europe
Financing share – Ford
Retail installment and lease
Wholesale
Fourth Quarter
2004
2003
2004
Full Year
2003
48%
83
39%
84
45%
84
39%
85
35%
97
33%
99
29%
97
31%
97
Contract Volume – New and used retail/lease (in thousands)
North America Segment
United States
Canada
Total North America Segment
455
38
493
406
41
447
1,842
172
2,014
1,883
197
2,080
International Segment
Europe
Other international
Total International Segment
Total financing volume
192
70
262
755
187
65
252
699
806
277
1,083
3,097
836
279
1,115
3,195
Borrowing Cost Rate**
Charge-offs (in millions)
On-Balance sheet
Retail installment & lease
Wholesale
Other
Total on-balance sheet charge-offs
Total Loss-to-receivables Ratios***
Managed****
Retail installment & lease
Wholesale
Other
Total managed charge-offs
Total Loss-to-receivables Ratios
4.0%
$ 357
24
5
$ 386
1.23%
$ 425
23
5
$ 453
3.9%
$ 486
110
10
$ 606
1.99%
$ 648
108
10
$ 766
3.8%
$ 1,281
43
3
$ 1,327
1.10%
$ 1,599
43
3
$ 1,645
4.2%
$ 1,718
148
25
$ 1,891
1.60%
$ 2,361
148
25
$ 2,534
1.09%
1.73%
0.97%
1.40%
1.18%
1.88%
1.04%
1.52%
—————
*
Continuing operations
** Includes the effect of interest rate swap agreements
*** Includes charge-offs on reacquired receivables
Total excluding charge-offs on reacquired receivables
**** See appendix for additional information
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 plus 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: retail installment receivables reported on Ford Motor Credit's
balance sheet include receivables sold in securitizations. These receivables have been legally sold to Ford Motor Credit
sponsored special purpose entities and are available only to pay securitization investors and other participants and are not
available to pay the obligations of Ford Motor Credit or the claims of Ford Motor Credit's creditors. Debt reported on
Ford Motor Credit's balance sheet includes debt issued to securitization investors which is payable solely out of collections
on the receivables supporting the securitization and is not the legal obligation of Ford Motor Credit.
RECONCILIATION OF MEASURES:
Managed Leverage Calculation
December 31,
2004
Total debt
Securitized off-balance sheet receivables outstanding*
Retained interest in securitized off-balance sheet receivables**
Adjustments for cash and cash equivalents
Adjustments for SFAS No. 133
Total adjusted debt
$ 144.3
37.7
(9.5)
(12.7)
(3.2)
$ 156.6
Total stockholder's equity (including minority interest)
Adjustments for SFAS No. 133
Total adjusted equity
$ 11.5
(0.1)
$ 11.4
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
December 31, 2004
Retail installment
Wholesale
Other finance receivables
Net investment in operating leases
Total net finance receivables and operating leases
On-Balance
Sheet
December 31, 2003
Retail installment
Wholesale
Other finance receivables
Net investment in operating leases
Total net finance receivables and operating leases
—————
* Includes securitized funding from discontinued operations
** Includes retained interest in securitized receivables from discontinued operations
$ 81.7
23.8
5.3
21.9
$ 132.7
$ 77.0
22.4
5.9
23.2
$ 128.5
(in billions)
13.7
12.6
Managed Receivables
Off-Balance
Sheet
(in billions)
$ 16.7
18.9
0.0
0.0
$ 35.6
$ 26.6
20.3
0.0
0.0
$ 46.9
2003
$ 149.7
49.4
(13.0)
(15.7)
(4.7)
$ 165.7
$ 12.5
0.2
$ 12.7
13.0
12.0
Total
$ 98.4
42.7
5.3
21.9
$ 168.3
$ 103.6
42.7
5.9
23.2
$ 175.4