 | Exhibit 99.1 |
| Contact: | Melinda Wilson 313-322-3475 mwils106@ford.com |
FOR IMMEDIATE RELEASE
FORD MOTOR CREDIT EARNS $734 MILLION
IN THE THIRD QUARTER
DEARBORN, Mich., October 19, 2004 — Ford Motor Credit Company reported net income of $734 million in the third quarter of 2004, up $230 million from $504 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $1.2 billion in the third quarter, compared with $808 million in the previous year. The increase in earnings primarily reflected improved credit loss performance and improved leasing results.
“We’re on track to deliver excellent results this year, as we continue to strengthen our operations,” said Mike Bannister, Chairman and CEO. “Our focus is on being the best partner we can to all of Ford Motor Company’s brands and dealers so that we can help the company sell more vehicles worldwide.”
On September 30, 2004, Ford Motor Credit’s on-balance sheet receivables totaled $132 billion, unchanged from December 31, 2003. Managed receivables were $171 billion on September 30, down $11 billion from $182 billion on December 31, primarily reflecting lower retail and wholesale financing volume.
Ford Motor Credit paid dividends of $1.5 billion during the quarter. On September 30, managed leverage was 13.2 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 nearly 19,000 employees, Ford Motor Credit operates in 36 countries and manages $171 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.comand at Ford Motor Credit’s investor center, http://www.fordcredit.com/investorcenter/.
# # #
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended September 30, 2004 and 2003
(in millions)
| Third Quarter | Nine Months | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Financing revenue | ||||||||||||||||
| Operating leases | $ | 1,406 | $ | 1,761 | $ | 4,429 | $ | 5,741 | ||||||||
| Retail | 1,193 | 1,268 | 3,434 | 3,473 | ||||||||||||
| Interest supplements and other support costs earned from affiliated companies | 792 | 851 | 2,464 | 2,548 | ||||||||||||
| Wholesale | 238 | 168 | 700 | 591 | ||||||||||||
| Other | 54 | 35 | 163 | 196 | ||||||||||||
| Total financing revenue | 3,683 | 4,083 | 11,190 | 12,549 | ||||||||||||
| Depreciation on operating leases | (1,133 | ) | (1,615 | ) | (3,682 | ) | (5,565 | ) | ||||||||
| Interest expense | (1,338 | ) | (1,430 | ) | (3,962 | ) | (4,428 | ) | ||||||||
| Net financing margin | 1,212 | 1,038 | 3,546 | 2,556 | ||||||||||||
| Other revenue | ||||||||||||||||
| Investment and other income related to sales of receivables | 506 | 576 | 1,636 | 2,139 | ||||||||||||
| Insurance premiums earned, net | 46 | 54 | 167 | 179 | ||||||||||||
| Other income | 271 | 230 | 786 | 736 | ||||||||||||
| Total financing margin and revenue | 2,035 | 1,898 | 6,135 | 5,610 | ||||||||||||
| Expenses | ||||||||||||||||
| Operating expenses | 568 | 603 | 1,671 | 1,726 | ||||||||||||
| Provision for credit losses | 264 | 446 | 641 | 1,509 | ||||||||||||
| Insurance expenses | 36 | 41 | 147 | 179 | ||||||||||||
| Total expenses | 868 | 1,090 | 2,459 | 3,414 | ||||||||||||
| Income from continuing operations before income taxes | 1,167 | 808 | 3,676 | 2,196 | ||||||||||||
| Provision for income taxes | 435 | 306 | 1,353 | 848 | ||||||||||||
| Income from continuing operations before minority interests | 732 | 502 | 2,323 | 1,348 | ||||||||||||
| Minority interests in net (loss)/income of subsidiaries | — | (1 | ) | 1 | 2 | |||||||||||
| Income from continuing operations | 732 | 503 | 2,322 | 1,346 | ||||||||||||
| Income/(loss) from discontinued/held-for-sale operations | 2 | 1 | (3 | ) | 1 | |||||||||||
| Net income | $ | 734 | $ | 504 | $ | 2,319 | $ | 1,347 | ||||||||
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
| September 30, | December 31, | |||||||
| 2004 | 2003 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 10,148 | $ | 15,688 | ||||
| Investments in securities | 595 | 611 | ||||||
| Finance receivables, net | 110,544 | 108,912 | ||||||
| Net investment in operating leases | 21,448 | 23,164 | ||||||
| Retained interest in securitized assets | 9,473 | 13,017 | ||||||
| Notes and accounts receivable from affiliated companies | 1,516 | 2,060 | ||||||
| Derivative financial instruments | 5,741 | 9,842 | ||||||
| Assets of discontinued/held-for-sale operations | — | 388 | ||||||
| Other assets | 4,674 | 5,530 | ||||||
| Total assets | $ | 164,139 | $ | 179,212 | ||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
| Liabilities | ||||||||
| Accounts payable | ||||||||
| Trade, customer deposits, and dealer reserves | $ | 1,475 | $ | 1,535 | ||||
| Affiliated companies | 1,758 | 1,258 | ||||||
| Total accounts payable | 3,233 | 2,793 | ||||||
| Debt | 135,336 | 149,652 | ||||||
| Deferred income taxes, net | 7,467 | 6,334 | ||||||
| Derivative financial instruments | 956 | 1,370 | ||||||
| Liabilities of discontinued/held-for-sale operations | — | 37 | ||||||
| Other liabilities and deferred income | 5,705 | 6,533 | ||||||
| Total liabilities | 152,697 | 166,719 | ||||||
| Minority interests in net assets of subsidiaries | 12 | 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 | 457 | 420 | ||||||
| Retained earnings | 5,831 | 6,912 | ||||||
| Total stockholder’s equity | 11,430 | 12,474 | ||||||
| Total liabilities and stockholder’s equity | $ | 164,139 | $ | 179,212 | ||||
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
OPERATING HIGHLIGHTS
| Third Quarter | First Nine Months | |||||||||||||||
| Financing Shares | 2004 | 2003 | 2004 | 2003 | ||||||||||||
| United States | ||||||||||||||||
| Financing share — Ford, Lincoln and Mercury | ||||||||||||||||
| Retail installment and lease | 55 | % | 48 | % | 44 | % | 39 | % | ||||||||
| Wholesale | 78 | 82 | 79 | 83 | ||||||||||||
| Europe | ||||||||||||||||
| Financing share — Ford | ||||||||||||||||
| Retail installment and lease | 29 | % | 31 | % | 28 | % | 31 | % | ||||||||
| Wholesale | 97 | 96 | 97 | 96 | ||||||||||||
Contract Volume— New and used retail/lease (in thousands) | ||||||||||||||||
| North America Segment | ||||||||||||||||
| United States | 579 | 588 | 1,479 | 1,551 | ||||||||||||
| Canada | 46 | 54 | 134 | 156 | ||||||||||||
| Total North America Segment | 625 | 642 | 1,613 | 1,707 | ||||||||||||
| International Segment | ||||||||||||||||
| Europe | 191 | 205 | 614 | 649 | ||||||||||||
| Other international | 69 | 70 | 207 | 214 | ||||||||||||
| Total International Segment | 260 | 275 | 821 | 863 | ||||||||||||
| Total financing volume | 885 | 917 | 2,434 | 2,570 | ||||||||||||
Borrowing Cost Rate* | ||||||||||||||||
| 4.0 | % | 4.1 | % | 3.8 | % | 4.3 | % | |||||||||
Charge-offs(in millions) | ||||||||||||||||
On-Balance sheet | ||||||||||||||||
| Retail installment & lease | $ | 340 | $ | 443 | $ | 999 | $ | 1,356 | ||||||||
| Wholesale | 10 | 21 | 19 | 38 | ||||||||||||
| Other | (1 | ) | 2 | (2 | ) | 16 | ||||||||||
| Total on-balance sheet charge-offs | $ | 349 | $ | 466 | $ | 1,016 | $ | 1,410 | ||||||||
| Total Loss-to-receivables Ratios** | 1.13 | % | 1.52 | % | 1.10 | % | 1.54 | % | ||||||||
Managed*** | ||||||||||||||||
| Retail installment & lease | $ | 448 | $ | 647 | $ | 1,379 | $ | 1,922 | ||||||||
| Wholesale | 11 | 19 | 20 | 39 | ||||||||||||
| Other | (1 | ) | 2 | (2 | ) | 16 | ||||||||||
| Total managed charge-offs | $ | 458 | $ | 668 | $ | 1,397 | $ | 1,977 | ||||||||
| Total Loss-to-receivables Ratios | 1.07 | % | 1.45 | % | 1.06 | % | 1.41 | % | ||||||||
| — — — — — | ||||||||||||||||
| * Includes the effect of interest rate swap agreements | ||||||||||||||||
| ** Includes charge-offs on reacquired receivables | ||||||||||||||||
| Total excluding charge-offs on reacquired receivables | 1.07 | % | 1.40 | % | 1.05 | % | 1.49 | % | ||||||||
| *** 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 | September 30, | December 31, | ||||||
| 2004 | 2003 | |||||||
| (in billions) | ||||||||
| Total debt | $ | 135.3 | $ | 149.7 | ||||
| Securitized off-balance sheet receivables outstanding | 38.7 | 49.4 | ||||||
| Retained interest in securitized off-balance sheet receivables | (9.5 | ) | (13.0 | ) | ||||
| Adjustments for cash and cash equivalents | (10.1 | ) | (15.7 | ) | ||||
| Adjustments for SFAS No. 133 | (3.6 | ) | (4.7 | ) | ||||
| Total adjusted debt | $ | 150.8 | $ | 165.7 | ||||
| Total stockholder’s equity (including minority interest) | $ | 11.4 | $ | 12.5 | ||||
| Adjustments for SFAS No. 133 | 0.0 | 0.2 | ||||||
| Total adjusted equity | $ | 11.4 | $ | 12.7 | ||||
| Managed leverage (to 1) = adjusted debt / adjusted equity | 13.2 | 13.0 | ||||||
| Memo: Financial statement leverage (to 1) = total debt / stockholder’s equity | 11.8 | 12.0 | ||||||
| Net Finance Receivables and Operating Leases | Managed Receivables | |||||||||||
| On-Balance | Off-Balance | |||||||||||
| Sheet | Sheet | Total | ||||||||||
| (in billions) | ||||||||||||
| September 30, 2004 | ||||||||||||
| Retail installment | $ | 82.1 | $ | 20.1 | $ | 102.2 | ||||||
| Wholesale | 21.2 | 18.6 | 39.8 | |||||||||
| Other finance receivables | 7.2 | 0.0 | 7.2 | |||||||||
| Net investment in operating leases | 21.5 | 0.0 | 21.5 | |||||||||
| Total net finance receivables and operating leases | $ | 132.0 | $ | 38.7 | $ | 170.7 | ||||||
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 | ||||||