THE ASSOCIATES REPORTS 15TH CONSECUTIVE YEAR OF RECORD EARNINGS FOR YEAR ENDED DEC. 31, 1991
THE ASSOCIATES REPORTS 15TH CONSECUTIVE YEAR OF
RECORD EARNINGS FOR YEAR ENDED DEC. 31, 1991
DALLAS, Feb. 13 /PRNewswire/ -- Associates Corporation of North America, part of the Financial Services Group of Ford Motor Company, achieved its 15th consecutive year of record earnings for the year ended Dec. 31, 1991, Reece A. Overcash Jr., chairman and chief executive officer, announced today.
Earnings before provision for income taxes increased 18 percent to $620.3 million for the year compared with $525.0 million for the prior year. Net earnings for the period were $400.7 million compared with $339.2 million a year earlier, an increase of 18 percent.
Overcash said, "Despite the recession, we achieved another successful year by adhering to our financial fundamentals, by making strategic acquisitions within our core businesses and by providing superior customer service throughout the company."
Total assets at year-end were a record $21.5 billion, an increase of 29 percent over 1990. Additionally, the Associates manages financial assets of approximately $2.2 billion for Ford subsidiaries in the United Kingdom, Japan, Canada and Puerto Rico. The results and assets of these managed operations are not included in those of Associates Corporation of North America.
Revenue for the year ended Dec. 31, 1991 increased 17 percent to $3.1 billion compared with $2.7 billion in the prior-year period. Gross finance receivables at Dec. 31, 1991 were $22.4 billion compared with $16.3 billion last year, a 37 percent increase.
Consumer finance gross receivables were $15.2 billion at Dec. 31, up 52 percent from the $10.0 billion reported last year. This growth was due primarily to the previously announced acquisitions of Ford Consumer Finance Company and Kentucky Finance Company, among others. Consumer finance volume for the year was $11.7 billion. The company's consumer operation was led by receivables growth in residential real estate- secured lending. Consumer finance receivables consist of loans secured by home equity, personal loans, manufactured housing sales financing and credit cards.
Commercial finance gross receivables totaled $7.2 billion at Dec. 31, compared to $6.3 billion a year ago, a 14 percent increase. Commercial finance volume for the year was $6.6 billion. The most significant growth was in the equipment financing portfolio, primarily resulting from the previously announced acquisition of Clark Credit Corporation. Commercial finance receivables result from the sales of transportation, construction, communications and other industrial equipment. Automobile club and employee relocation services are also part of the commercial operation.
Revenue from insurance premiums was $202.5 million. The insurance operating group is principally engaged in underwriting credit life, health and physical damage insurance for customers of the consumer and commercial finance operations.
The Associates provides consumer finance, commercial finance and leasing and insurance through approximately 900 offices in the United States.
/CONTACT: Fred Stern of Associates Corporation of North America, 214-541-4042/
(F) CO: Associates Corporation of North America ST: Texas IN: FIN AUT SU: ERN SM -- NY050 -- 9695 02/13/92 11:21 EST