Events and Webcasts

Events & Webcasts

Ford Motor Company 4th Quarter 2013 Fixed Income Conference Call

Date Speakers Release Webcast Slides
January 28, 201411:00 AM EST

Neil Schloss, Vice President and Treasurer; Stuart Rowley, Vice President and Controller; Mike Seneski, Ford Credit Chief Financial Officer



Ford Credit Earns Full Year 2013 Pre-Tax Profit of $1.8 Billion; Net Income of $1.5 Billion*

Download Full Earnings Release (PDF)

DEARBORN, Mich., Jan. 28, 2014 – Ford Motor Credit Company reported a pre-tax profit of $1.8 billion in 2013, compared with $1.7 billion a year earlier.  The improvement was more than explained by higher volume, primarily in North America, driven by an increase in leasing reflecting changes in Ford’s marketing programs, as well as higher non-consumer finance receivables due to higher dealer stocks.  Partial offsets were higher credit losses due to lower credit loss reserve reductions in all geographic segments and unfavorable residual performance related to lower than expected auction values in North America.  Ford Credit’s net income was $1.5 billion in 2013, compared with $1.2 billion in the previous year.

In the fourth quarter of 2013, Ford Credit’s pre-tax profit was $368 million, a decrease of $46 million from a year earlier.  The decrease primarily reflects unfavorable residual performance related to lower auction values and lower financing margin, both in North America, as well as credit loss reserve changes; higher volume was a partial offset.  Ford Credit reported fourth quarter net income of $568 million, an increase of $300 million from a year earlier.  The increase is primarily explained by a reduction in its tax liability resulting from favorable one-time tax items recorded in the quarter.

“We’re pleased with our team’s 2013 performance,” Ford Credit Chairman and CEO Bernard Silverstone said.  “The team delivered solid results in all the key measures of our business.  We remain focused on continuous improvement and providing ongoing support to Ford, our dealers and our customers in 2014.”

On Dec. 31, 2013, Ford Credit’s total net receivables were $100 billion, compared with $89 billion at year-end 2012.**  Managed receivables were $103 billion on Dec. 31, 2013, up from $92 billion on Dec. 31, 2012.***

On Dec. 31, 2013, managed leverage was 8.5:1, compared with 8.3:1 on Dec. 31, 2012.  Ford Credit distributed $445 million to its parent in 2013.

For 2014, Ford Credit expects full year pre-tax profit to be about equal to 2013.  Ford Credit also expects managed receivables at year-end of about $110 billion, managed leverage to continue in the range of 8:1 to 9:1, and distributions to its parent of about $250 million.

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About Ford Motor Credit Company
Ford Motor Credit Company LLC has provided dealer and customer financing to support the sale of Ford Motor Company products since 1959.  Ford Credit is a wholly owned subsidiary of Ford.  For more information, visit www.fordcredit.com or www.lincolnafs.com.

Contacts:

Margaret Mellott

Steve Dahle

 

Ford Credit

Fixed Income

 

Communications

Investment Community

 

313.322.5393

313.621.0881

 

mmellott@ford.com

fixedinc@ford.com


— — — — —
*   The financial results discussed herein are presented on a preliminary basis; final data will be included in our Annual Report on Form 10-K for the year ended December 31, 2013.
**  For additional information, refer to subnote (c) in the Reconciliation of Non-GAAP measures to GAAP section of the Appendix.
*** For additional information, refer to subnote (d) in the Reconciliation of Non-GAAP measures to GAAP section of the Appendix.


 

Risk Factors

Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

  • Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession, geopolitical events, or other factors; 
  • Decline in Ford’s market share or failure to achieve growth;
  • Lower-than-anticipated market acceptance of Ford’s new or existing products;
  • Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly in the United States; 
  • An increase in or continued volatility of fuel prices, or reduced availability of fuel; 
  • Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors; 
  • Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
  • Adverse effects resulting from economic, geopolitical, or other events; 
  • Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to ensure supplies of components or materials and could increase costs, affect liquidity, or cause production constraints or disruptions; 
  • Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or other factors); 
  • Single-source supply of components or materials; 
  • Labor or other constraints on Ford’s ability to maintain competitive cost structure; 
  • Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition; 
  • Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or investment returns); 
  • Restriction on use of tax attributes from tax law “ownership change;”  
  • The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs; 
  • Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions; 
  • Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise; 
  • A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller (“take-or-pay” contracts); 
  • Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments; 
  • Inherent limitations of internal controls impacting financial statements and safeguarding of assets; 
  • Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier;  
  • Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities; 
  • Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors; 
  • Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles; 
  • Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; and 
  • New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions.

We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized.  It is to be expected that there may be differences between projected and actual results.  Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.  For additional discussion, see “Item 1A, Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012 as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.