Printer Friendly

FORD CREDIT REPORTS RECORD 1991 EARNINGS

 FORD CREDIT REPORTS RECORD 1991 EARNINGS
 DEARBORN, Mich., Feb. 13 /PRNewswire/ -- Ford Motor Credit Company


today reported record net income for 1991, while continuing to provide strong support for Ford Motor Company (NYSE: F) vehicle sales.
 Net income for 1991 was $749 million, up $186 million or 33 percent from 1990, Chairman William E. Odom and President Edsel B. Ford II announced. Compared with last year, the higher earnings reflected improved net interest margins, gains on sales of receivables, and lower credit losses. The margin improvement reflected the decline in Ford Credit's net average cost of borrowings in the United States from 8.8 percent in 1990 to 7.9 percent in 1991. Credit losses were 0.92 percent of average receivables, including operating leases, compared with 0.94 percent for 1990. At Dec. 31, 1991, the company's assets totaled $57 billion compared with $59 billion a year earlier, reflecting the sale of receivables during the year.
 "Ford Credit's 1991 results reflect our continuing focus on business fundamentals," Odom noted. "Our efforts to improve our profit structure have been effective. We are particularly pleased with our progress in controlling credit losses, especially in these uncertain economic times. We also are encouraged by the government's efforts to stimulate economic growth through interest rate reductions. We believe, however, additional economic policy actions are required to build consumer confidence for a quick recovery."
 Despite the downturn in auto sales in 1991, Ford Credit provided U.S. retail financing for 1,494,000 new and used vehicles, up 4 percent from 1990. Ford Credit financed 35 percent of all new cars and trucks sold by Ford and Lincoln-Mercury dealers in the U.S., up four percentage points from last year, and it provided wholesale financing for a record 75 percent of Ford Motor Company factory sales to U.S. car and truck dealers.
 "Our increased percentage of vehicles financed reflects our commitment to provide high-quality products and services to our dealers and their customers in good times and in bad times," Mr. Ford explained. "We responded to the demand for financing created in a lending environment where credit availability generally has been restricted.
 "In addition, Ford Credit has been a leader in reducing retail automotive financing rates in response to our lower borrowing rates. During 1991, we implemented a number of actions with Ford and Lincoln- buyer."
 Ford Credit provides vehicle financing for about 4.5 million retail automotive customers and 8,500 Ford, Lincoln-Mercury, Ford Truck, Ford New Holland, and affiliated dealers in the United States, Canada and Australia. It also oversees the activities of the international financing affiliates of Ford Motor Company in 20 markets outside the U.S., Canada and Australia, and it manages the insurance businesses of The American Road Insurance Company.
 Ford Credit is a wholly owned subsidiary of Ford Motor Company and is part of Ford's Financial Services Group.
 -0- 2/13/92
 /CONTACT: Jon Harmon of Ford Motor Credit Company, 313-594-1096/
 (F) CO: Ford Motor Credit Company ST: Michigan IN: AUT FIN SU: ERN


ML-DD -- DE003 -- 9555 02/13/92 08:32 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 13, 1992
Words:516
Previous Article:TARGETED GENETICS, FRED HUTCHINSON CANCER RESEARCH CENTER RECEIVE APPROVAL TO BEGIN HUMAN GENE THERAPY TRIAL
Next Article:PRIMARK ANNOUNCES APPOINTMENT OF VICE PRESIDENT - INVESTOR RELATIONS
Topics:


Related Articles
CHRYSLER FINANCIAL CORPORATION EARNED $276 MILLION IN 1991
FIRST NATIONWIDE FINANCIAL POSTS LOSS OF $73 MILLION FOR 1991
THE ASSOCIATES REPORTS 15TH CONSECUTIVE YEAR OF RECORD EARNINGS FOR YEAR ENDED DEC. 31, 1991
NORWEST CORPORATION REPORTS RECORD QUARTERLY AND SIX MONTH EARNINGS
FORD CREDIT ANNOUNCES RECORD SECOND-QUARTER EARNINGS
ACCOUNTING CHANGES AFFECT FORD RESULTS
FORD CREDIT REPORTS RECORD 1992 EARNINGS
THE ASSOCIATES ACHIEVES 18TH CONSECUTIVE YEAR OF INCREASED EARNINGS FOR YEAR ENDED DEC. 31, 1992
FORD CREDIT ANNOUNCES SECOND-QUARTER EARNINGS
FORD CREDIT ANNOUNCES RECORD 1994 EARNINGS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters