Exhibit 99.1
FOR IMMEDIATE RELEASE
FORD CREDIT EARNS RECORD $688 MILLION IN FIRST QUARTER
DEARBORN, Mich., April 21, 2004 — Ford Motor Credit Company reported net income of $688 million in the first quarter of 2004, up $246 million from earnings of $442 million a year earlier. On a pre-tax basis from continuing operations, Ford Credit earned $1.1 billion in the first quarter, compared with $727 million in the previous year. The increase in earnings primarily reflected improved credit loss performance, higher used vehicle prices and the favorable impact of the low interest rate environment.
“We’re making great progress on all our key business drivers, and you can see the results of that in record earnings this quarter,” said Greg Smith, chairman and CEO. “The entire Ford Credit team continues to provide superior service to Ford brands and Ford dealers, and I’m very proud of their efforts and of our results.”
On March 31, 2004, receivables on Ford Credit’s balance sheet totaled $130 billion, compared with $132 billion on December 31. Managed receivables were $179 billion on March 31, compared with $182 billion on December 31. The lower on-balance sheet and managed receivables primarily reflected lower lease and retail placement volumes.
Ford Credit paid a dividend of $900 million during the quarter. On March 31, managed leverage was 12.8 to 1.
Ford Credit is a wholly-owned subsidiary of Ford Motor Company. Now in its 45th year, Ford Credit provides vehicle financing in 36 countries to nearly 11 million customers and more than 12,500 automotive dealers. More information can be found atwww.fordcredit.comand at Ford Credit’s investor center,www.fordcredit.com/investorcenter/.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended March 31, 2004 and 2003
(in millions)
| First Quarter | ||||||||
| 2004 | 2003 | |||||||
| (Unaudited) | ||||||||
| Financing revenue | ||||||||
| Operating leases | $ | 1,490 | $ | 2,004 | ||||
| Retail | 1,175 | 1,115 | ||||||
| Interest supplements and other support costs earned from affiliated companies | 825 | 906 | ||||||
| Wholesale | 239 | 196 | ||||||
| Other | 49 | 89 | ||||||
| Total financing revenue | 3,778 | 4,310 | ||||||
| Depreciation on operating leases | (1,307 | ) | (2,128 | ) | ||||
| Interest expense | (1,329 | ) | (1,519 | ) | ||||
| Net financing margin | 1,142 | 663 | ||||||
| Other revenue | ||||||||
| Investment and other income related to sales of receivables | 549 | 891 | ||||||
| Insurance premiums earned, net | 60 | 64 | ||||||
| Other income | 225 | 257 | ||||||
| Total financing margin and revenue | 1,976 | 1,875 | ||||||
| Expenses | ||||||||
| Operating expenses | 551 | 584 | ||||||
| Provision for credit losses | 301 | 521 | ||||||
| Insurance expenses | 37 | 43 | ||||||
| Total expenses | 889 | 1,148 | ||||||
| Income from continuing operations before income taxes | 1,087 | 727 | ||||||
| Provision for income taxes | 398 | 284 | ||||||
| Income from continuing operations before minority interests | 689 | 443 | ||||||
| Minority interests in net income of subsidiaries | — | 1 | ||||||
| Income from continuing operations | 689 | 442 | ||||||
| Loss from discontinued/held-for-sale operations | (1 | ) | — | |||||
| Net income | $ | 688 | $ | 442 | ||||
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
| March 31, | December 31, | |||||||
| 2004 | 2003 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 12,488 | $ | 15,688 | ||||
| Investments in securities | 574 | 611 | ||||||
| Finance receivables, net | 108,109 | 108,912 | ||||||
| Net investment in operating leases | 22,008 | 23,164 | ||||||
| Retained interest in securitized assets | 13,369 | 13,017 | ||||||
| Notes and accounts receivable from affiliated companies | 1,871 | 1,653 | ||||||
| Derivative financial instruments | 7,588 | 9,866 | ||||||
| Assets of discontinued and held-for-sale operations | 377 | 388 | ||||||
| Other assets | 4,899 | 5,530 | ||||||
| Total assets | $ | 171,283 | $ | 178,829 | ||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
| Liabilities | ||||||||
| Accounts payable | ||||||||
| Trade, customer deposits, and dealer reserves | $ | 1,537 | $ | 1,535 | ||||
| Affiliated companies | 1,548 | 1,258 | ||||||
| Total accounts payable | 3,085 | 2,793 | ||||||
| Debt | 142,441 | 149,652 | ||||||
| Deferred income taxes, net | 6,760 | 6,334 | ||||||
| Derivative financial instruments | 962 | 987 | ||||||
| Liabilities of discontinued and held-for-sale operations | 36 | 37 | ||||||
| Other liabilities and deferred income | 5,706 | 6,533 | ||||||
| Total liabilities | 158,990 | 166,336 | ||||||
| Minority interests in net assets of subsidiaries | 11 | 19 | ||||||
| Stockholder’s equity | ||||||||
| Capital stock, par value $100 a share, 250,000 shares authorized, issued and outstanding | 25 | 25 | ||||||
| Paid-in surplus (contributions by stockholder) | 5,117 | 5,117 | ||||||
| Accumulated other comprehensive income | 440 | 420 | ||||||
| Retained earnings | 6,700 | 6,912 | ||||||
| Total stockholder’s equity | 12,282 | 12,474 | ||||||
| Total liabilities and stockholder’s equity | $ | 171,283 | $ | 178,829 | ||||
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
OPERATING HIGHLIGHTS
| First Quarter | ||||||||
| 2004 | 2003 | |||||||
Financing Shares | ||||||||
| United States | ||||||||
| Financing share — Ford, Lincoln and Mercury | ||||||||
| Retail installment and lease | 38 | % | 35 | % | ||||
| Wholesale | 80 | 82 | ||||||
| Europe | ||||||||
| Financing share — Ford | ||||||||
| Retail installment and lease | 28 | % | 30 | % | ||||
| Wholesale | 96 | 98 | ||||||
Contract Volume— New and used retail/lease (in thousands) | ||||||||
| North America Segment | ||||||||
| United States | 428 | 472 | ||||||
| Canada | 36 | 42 | ||||||
| Total North America Segment | 464 | 514 | ||||||
| International Segment | ||||||||
| Europe | 213 | 221 | ||||||
| Other international | 74 | 79 | ||||||
| Total International Segment | 287 | 300 | ||||||
| Total financing volume | 751 | 814 | ||||||
Borrowing Cost Rate | 3.7 | % | 4.5 | % | ||||
Credit Losses(in millions) | ||||||||
On-Balance sheet | ||||||||
| Retail installment & lease | $ | 333 | $ | 493 | ||||
| Wholesale | 3 | 1 | ||||||
| Other | (1 | ) | (1 | ) | ||||
| Total on-balance sheet credit losses | $ | 335 | $ | 493 | ||||
| Total Loss-to-receivables Ratios (LTR) | 1.11 | %* | 1.61 | % | ||||
Managed** | ||||||||
| Retail installment & lease | $ | 491 | $ | 686 | ||||
| Wholesale | 3 | 1 | ||||||
| Other | (1 | ) | (1 | ) | ||||
| Total managed credit losses | $ | 493 | $ | 686 | ||||
| Total Loss-to-receivables Ratios (LTR) | 1.10 | % | 1.42 | % | ||||
| * Includes credit losses on reacquired receivables | ||||||||
| Total excluding credit losses on reacquired receivables | 1.03 | % | 1.61 | % | ||||
| ** See appendix for additional information | ||||||||
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
APPENDIX
In evaluating Ford Credit’s financial performance, Ford 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 Credit’s balance sheet and receivables Ford Credit sold in off-balance sheet securitizations and continues to service. | |||
| • | Managed credit losses: credit losses associated with receivables reported on Ford Credit’s balance sheet plus credit losses associated with receivables that Ford Credit sold in off-balance sheet securitizations and continues to service. | |||
IMPACT OF ON-BALANCE SHEET SECURITIZATION:retail installment receivables reported on Ford Credit’s balance sheet include receivables sold in securitizations. These receivables have been legally sold to Ford 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 Credit or the claims of Ford Credit’s creditors. Debt reported on Ford 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 Credit.
RECONCILIATION OF MEASURES:
Managed Leverage Calculation
| March 31, | December 31, | |||||||
| 2004 | 2003 | |||||||
| (in billions) | ||||||||
| Total debt | $ | 142.4 | $ | 149.7 | ||||
| Securitized off-balance sheet receivables outstanding | 48.4 | 49.4 | ||||||
| Retained interest in securitized off-balance sheet receivables | (13.4 | ) | (13.0 | ) | ||||
| Adjustments for cash and cash equivalents | (12.5 | ) | (15.7 | ) | ||||
| Adjustments for SFAS No. 133 | (5.2 | ) | (4.7 | ) | ||||
| Total adjusted debt | $ | 159.7 | $ | 165.7 | ||||
| Total stockholder’s equity (including minority interest) | $ | 12.3 | $ | 12.5 | ||||
| Adjustments for SFAS No. 133 | 0.2 | 0.2 | ||||||
| Total adjusted equity | $ | 12.5 | $ | 12.7 | ||||
| Managed leverage (to 1) = adjusted debt / adjusted equity | 12.8 | 13.0 | ||||||
| Memo: Financial statement leverage (to 1) = total debt / stockholder’s equity | 11.6 | 12.0 | ||||||
Net Finance Receivables and Operating Leases
| Managed Receivables | ||||||||||||
| On-Balance | Off-Balance | |||||||||||
| Sheet | Sheet | Total | ||||||||||
| (in billions) | ||||||||||||
March 31, 2004 | ||||||||||||
| Retail installment | $ | 77.4 | $ | 26.4 | $ | 103.8 | ||||||
| Wholesale | 22.4 | 22.0 | 44.4 | |||||||||
| Other finance receivables | 8.3 | 0.0 | 8.3 | |||||||||
| Net investment in operating leases | 22.0 | 0.0 | 22.0 | |||||||||
| Total net finance receivables and operating leases | $ | 130.1 | $ | 48.4 | $ | 178.5 | ||||||
December 31, 2003 | ||||||||||||
| Retail installment | $ | 77.8 | $ | 29.1 | $ | 106.9 | ||||||
| Wholesale | 22.5 | 20.3 | 42.8 | |||||||||
| Other finance receivables | 8.6 | 0.0 | 8.6 | |||||||||
| Net investment in operating leases | 23.2 | 0.0 | 23.2 | |||||||||
| Total net finance receivables and operating leases | $ | 132.1 | $ | 49.4 | $ | 181.5 | ||||||