Exhibit 99.1
| Contact: | Margaret Mellott 1-313-322-5393 | Fixed Income Investment Community: David Dickenson 1-313-621-0881 | |
| ddickens@ford.com |
FOR IMMEDIATE RELEASE
FORD CREDIT EARNS $427 MILLION IN THE THIRD QUARTER OF 2009*
DEARBORN, Mich., November 2, 2009 – Ford Motor Credit Company reported net income of $427 million in the third quarter of 2009, an increase of $332 million from earnings of $95 million a year earlier. On a pre-tax basis, Ford Credit earned $677 million in the third quarter, compared with $161 million in the previous year. On a pre-tax basis, Ford Credit earned $1.3 billion in the first nine months of 2009.
The increase in pre-tax earnings primarily reflected lower depreciation expense for leased vehicles due to higher auction values, a lower provision for credit losses, and lower operating costs. These factors were offset partially by lower volume.
“We always adapt our operations to changing business conditions and had the additional benefit in the third quarter of improved used vehicle auction markets. We continue to profitably support Ford Motor Company sales,” Chairman and CEO Mike Bannister said.
On September 30, 2009, Ford Credit’s on-balance sheet net receivables totaled $93 billion, compared with $116 billion at year-end 2008. Managed receivables were $94 billion on September 30, 2009, down from $118 billion on December 31, 2008. The lower receivables primarily reflected lower industry volumes, lower dealer stocks, and the transition of Jaguar, Land Rover and Mazda financing to other finance providers.
On September 30, 2009, managed leverage was 7.7 to 1. During the third quarter of 2009, Ford Credit distributed $431 million to its immediate parent, Ford Holdings LLC.
Ford Credit expects to be profitable in the fourth quarter of 2009 and end the year with managed receivables between $90 billion and $95 billion. Ford Credit expects reduced profits in 2010 based on lower average receivables and non-recurrence of favorable 2009 factors.
Ford Motor Credit Company LLC is one of the world’s largest automotive finance companies and has supported the sale of Ford Motor Company products since 1959. Ford Credit is an indirect, wholly owned subsidiary of Ford. It provides automotive financing for Ford, Lincoln, Mercury and Volvo dealers and customers. More information can be found at http://www.fordcredit.com and at Ford Credit’s investor center, http://www.fordcredit.com/investorcenter/.
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| * | The financial results discussed herein are presented on a preliminary basis; final data will be included in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. |
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FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
PRELIMINARY
CONSOLIDATED STATEMENT OF OPERATIONS
For the Periods Ended September 30, 2009 and 2008
(in millions)
Third Quarter Nine Months 2009 2008 2009 2008 Financing revenue Operating leases $ 1,168 $ 1,598 $ 3,854 $ 5,000 Retail 750 866 2,266 2,504 Interest supplements and other support costs earned from affiliated companies 917 1,189 2,813 3,682 Wholesale 188 425 709 1,340 Other 18 32 60 103 Total financing revenue 3,041 4,110 9,702 12,629 Depreciation on vehicles subject to operating leases (842 ) (1,573 ) (3,200 ) (7,477 ) Interest expense (1,259 ) (1,888 ) (3,969 ) (5,781 ) Net financing margin 940 649 2,533 (629 ) Other revenue Insurance premiums earned, net 20 28 76 110 Other income, net 144 294 574 832 Total financing margin and other revenue 1,104 971 3,183 313 Expenses Operating expenses 306 415 956 1,161 Provision for credit losses 111 377 893 1,249 Insurance expenses 10 18 47 90 Total expenses 427 810 1,896 2,500 Income/(Loss) before income taxes 677 161 1,287 (2,187 ) Provision for/(Benefit from) income taxes 250 66 462 (870 ) Income/(Loss) from continuing operations 427 95 825 (1,317 ) Gain on disposal of discontinued operations — — 2 9 Net income/(loss) $ 427 $ 95 $ 8 27 $ (1,308 )
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIESPRELIMINARYCONSOLIDATED BALANCE SHEET(in millions)
| September 30, | December 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 15,296 | $ | 15,473 | ||||
| Marketable securities | 8,641 | 8,606 | ||||||
| Finance receivables, net | 76,163 | 93,331 | ||||||
| Net investment in operating leases | 16,320 | 22,506 | ||||||
| Notes and accounts receivable from affiliated companies | 846 | 1,047 | ||||||
| Derivative financial instruments | 2,328 | 3,791 | ||||||
| Assets held-for-sale | 911 | 214 | ||||||
| Other assets | 4,287 | 5,159 | ||||||
| Total assets | $ | 124,792 | $ | 150,127 | ||||
| LIABILITIES AND SHAREHOLDER’S INTEREST | ||||||||
| Liabilities | ||||||||
| Accounts payable | ||||||||
| Customer deposits, dealer reserves and other | $ | 1,060 | $ | 1,781 | ||||
| Affiliated companies | 1,685 | 1,015 | ||||||
| Total accounts payable | 2,745 | 2,796 | ||||||
| Debt | 103,368 | 126,458 | ||||||
| Deferred income taxes | 2,078 | 2,668 | ||||||
| Derivative financial instruments | 1,481 | 2,145 | ||||||
| Liabilities held-for-sale | — | 56 | ||||||
| Other liabilities and deferred income | 4,628 | 5,438 | ||||||
| Total liabilities | 114,300 | 139,561 | ||||||
| Shareholder’s interest | ||||||||
| Shareholder’s interest | 5,149 | 5,149 | ||||||
| Accumulated other comprehensive income | 1,016 | 432 | ||||||
| Retained earnings | 4,327 | 4,985 | ||||||
| Total shareholder’s interest | 10,492 | 10,566 | ||||||
| Total liabilities and shareholder’s interest | $ | 124,792 | $ | 150,127 | ||||
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
OPERATING HIGHLIGHTS
| Third Quarter | First Nine Months | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Financing Shares | ||||||||||||||||
| United States | ||||||||||||||||
| Financing share – Ford, Lincoln and Mercury | ||||||||||||||||
| Retail installment and lease | 30 | % | 46 | % | 30 | % | 40 | % | ||||||||
| Wholesale | 80 | 77 | 79 | 77 | ||||||||||||
| Europe | ||||||||||||||||
| Financing share – Ford | ||||||||||||||||
| Retail installment and lease | 27 | % | 31 | % | 27 | % | 28 | % | ||||||||
| Wholesale | 99 | 98 | 99 | 98 | ||||||||||||
Contract Volume – New and used retail/lease (in thousands) | ||||||||||||||||
| North America segment | ||||||||||||||||
| United States | 161 | 277 | 449 | 864 | ||||||||||||
| Canada | 15 | 43 | 68 | 122 | ||||||||||||
| Total North America segment | 176 | 320 | 517 | 986 | ||||||||||||
| International segment | ||||||||||||||||
| Europe | 112 | 149 | 358 | 504 | ||||||||||||
| Other international | 11 | 27 | 37 | 105 | ||||||||||||
| Total International segment | 123 | 176 | 395 | 609 | ||||||||||||
| Total contract volume | 299 | 496 | 912 | 1,595 | ||||||||||||
Borrowing Cost Rate* | 4.9 | % | 5.7 | % | 4.9 | % | 5.5 | % | ||||||||
Charge-offs – On-Balance Sheet (in millions) | ||||||||||||||||
| Retail installment and lease | $ | 204 | $ | 299 | $ | 774 | $ | 757 | ||||||||
| Wholesale | 33 | (3 | ) | 73 | 10 | |||||||||||
| Other | 3 | — | 10 | 4 | ||||||||||||
Total charge-offs – on-balance sheet | $ | 240 | $ | 296 | $ | 857 | $ | 771 | ||||||||
Total loss-to-receivables ratio – on-balance sheet | 0.97 | % | 0.89 | % | 1.10 | % | 0.74 | % | ||||||||
| Memo : | ||||||||||||||||
Total charge-offs – managed (in millions)** | $ | 241 | $ | 303 | $ | 862 | $ | 800 | ||||||||
Total loss-to-receivables ratio – managed** | 0.97 | % | 0.89 | % | 1.10 | % | 0.75 | % | ||||||||
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| * | On-balance sheet debt includes the effects of derivatives and facility fees. |
| ** | See Appendix for additional information. |
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
APPENDIX
In evaluating Ford Credit’s financial performance, Ford Credit management uses financial measures based on Generally Accepted Accounting Principles (“GAAP”), as well as financial measures that include adjustments from GAAP. Included below are brief definitions of key terms, information about the impact of on-balance sheet securitization and a reconciliation of non-GAAP measures to GAAP:
| · | Managed receivables: receivables reported on Ford Credit’s balance sheet, excluding unearned interest supplements related to finance receivables, and securitized off-balance sheet receivables that Ford Credit continues to service |
| · | Charge-offs on managed receivables: charge-offs associated with receivables reported on Ford Credit’s balance sheet and charge-offs associated with receivables that Ford Credit sold in off-balance sheet securitizations and continues to service |
| · | Equity: shareholder’s interest reported on Ford Credit’s balance sheet |
IMPACT OF ON-BALANCE SHEET SECURITIZATION: Finance receivables (retail and wholesale) and net investment in operating leases reported on Ford Credit’s balance sheet include assets that have been sold for legal purposes in securitization transactions that do not satisfy the requirements for accounting sale treatment. These receivables are available only for payment of the debt and other obligations issued or arising in the securitization transactions; they are not available to pay the other obligations of Ford Credit or the claims of Ford Credit’s other creditors. Debt reported on Ford Credit’s balance sheet includes obligations issued or arising in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds the right to the excess cash flows not needed to pay the debt and other obligations issued or arising in each of these securitization transactions.
| RECONCILIATION OF NON-GAAP MEASURES TO GAAP: | ||||||||
| Managed Leverage Calculation | September 30, | December 31, | ||||||
| 2009 | 2008 | |||||||
| (in billions) | ||||||||
| Total debt | $ | 103.4 | $ | 126.5 | ||||
| Securitized off-balance sheet receivables outstanding | 0.1 | 0.6 | ||||||
| Retained interest in securitized off-balance sheet receivables | — | (0.1 | ) | |||||
| Adjustments for cash, cash equivalents, and marketable securities* | (23.4 | ) | (23.6 | ) | ||||
| Adjustments for derivative accounting** | (0.4 | ) | (0.4 | ) | ||||
| Total adjusted debt | $ | 79.7 | $ | 103.0 | ||||
| Equity | $ | 10.5 | $ | 10.6 | ||||
| Adjustments for derivative accounting** | (0.1 | ) | (0.2 | ) | ||||
| Total adjusted equity | $ | 10.4 | $ | 10.4 | ||||
| Managed leverage (to 1) = Total adjusted debt / Total adjusted equity | 7.7 | 9.9 | ||||||
| Memo: Financial statement leverage (to 1) = Total debt / Equity | 9.9 | 12.0 | ||||||
| Net Finance Receivables and Operating Leases | September 30, | December 31, | ||||||
| 2009 | 2008 | |||||||
| Receivables – On-Balance Sheet | (in billions) | |||||||
| Retail installment | $ | 58.4 | $ | 65.5 | ||||
| Wholesale | 18.6 | 27.7 | ||||||
| Other finance receivables | 2.5 | 2.8 | ||||||
| Unearned interest supplements | (1.8 | ) | (1.3 | ) | ||||
| Allowance for credit losses | (1.5 | ) | (1.4 | ) | ||||
| Finance receivables, net | 76.2 | 93.3 | ||||||
| Net investment in operating leases | 16.3 | 22.5 | ||||||
| Total receivables – on-balance sheet | $ | 92.5 | $ | 115.8 | ||||
| Memo: Total receivables – managed*** | $ | 94.4 | $ | 117.7 | ||||
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| * | Excludes marketable securities related to insurance activities. |
| ** | Primarily related to market valuation adjustments to derivatives due to movements in interest rates. Adjustments to debt are related to designated fair value hedges and adjustments to equity are related to retained earnings. |
| *** | Includes on-balance sheet receivables, excluding unearned interest supplements related to finance receivables of $1.8 billion and $1.3 billion at September 30, 2009 and December 31, 2008, respectively; and includes off-balance sheet retail receivables of about $100 million and about $600 million at September 30, 2009 and December 31, 2008, respectively. |