Exhibit 99.1
[GRAPHIC OMITTED]
Contact: Daniel Jarvis
Ford Credit
313-594-2527
djarvis1@ford.com
IMMEDIATE RELEASE
FORD CREDIT EARNS $393 MILLION IN THE FIRST QUARTER
DEARBORN, Mich., April 19, 2001 - Ford Credit earned $393 million in
the first quarter of 2001, Chairman and Chief Executive Officer Donald
A. Winkler announced today.
Excluding adjustments related to SFAS 133, Ford Credit earned $406
million - a record for any first quarter. A year ago, first quarter
earnings were $353 million. The earnings increase of $53 million, or 15
percent (excluding SFAS 133), reflects primarily higher financing
volume. Improvements in investment and other income offset higher
credit losses primarily associated with the restructuring of North
American operations and lower net financing margins. After-tax return
on average equity improved to 13.3 percent in the first quarter 2001,
compared with 12.7 percent a year earlier.
"We've had an outstanding start to 2001, evidenced by strong
improvement in after-tax return on equity and great progress in our
earnings growth," Winkler said. "This means we're on track toward
achieving both of our corporate milestones for this year."
Ford Credit's total net finance receivables increased to $162.3 billion
as of March 31, 2001, compared with $149.9 billion in the same period
of the previous year.
Ford Credit is a wholly owned subsidiary of Ford Motor Company and is
the world's largest automotive finance company. Now in its 42nd year,
Ford Credit provides vehicle financing in 40 countries to more than 10
million customers and 12,000 automotive dealers. More information about
Ford Credit can be found on the World Wide Web at www.fordcredit.com.
# # #
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Global Communications, Ford Motor Credit Company, The American Road,
P.O. Box 1732, Dearborn, Michigan, 48121. Telephone: 313/594-1096;
Fax: 313/390-2453. Internet: http://www.fordcredit.com
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
First Quarter
----------------------------------
2001 2000
--------------- ----------------
Income (in Millions)
- ------
Income Before Income Taxes $ 625.7 $ 577.1
Net Income 393.5 353.1
Memo: Depreciation Expense $ 2,121.4 $ 1,858.4
Market Share
Ford Retail & Lease United States 44.9 % 46.3 %
Europe 30.3 30.7
Ford Wholesale United States 86.1 % 86.3 %
Europe 95.6 97.0
Contract Volume - New and Used Retail/Lease (in Thousands)
- ---------------
United States 853 847
Europe 229 206
Other International 169 158
--- ---
Total Contract Volume 1,251 1,211
===== =====
Assets (in Millions)
- ------
Net Finance Receivables $ 123,548.3 $ 114,373.9
Net Investment in Operating Leases 38,730.4 35,517.5
------------- -------------
Total Net Finance Receivables $ 162,278.7 $ 149,891.4
Other Assets 12,877.6 11,843.7
------------- -------------
Total Assets $ 175,156.3 $ 161,735.1
============ =============
Liabilities and Stockholder's Equity (in Millions)
- ------------------------------------
Liabilities
Debt - Payable within one year $ 58,559.1 $ 65,320.7
Debt - Payable after one year 89,388.4 71,375.7
------------- -------------
Total Debt $ 147,947.5 $ 136,696.4
Other Liabilities 15,534.0 13,092.5
------------- -------------
Total Liabilities $ 163,481.5 $ 149,788.9
Minority Interests in Net Assets of Subsidiaries 17.3 421.5
Stockholder's Equity 11,657.5 11,524.7
------------ -------------
Total Liabilities and Stockholder's Equity $ 175,156.3 $ 161,735.1
============ ============
Selected Financial Metrics Excluding SFAS 133
Income Before Income Taxes $ 646.0
Net Income 406.3
Leverage 12.0:1
Stockholder's Equity $ 12,158.2
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements - The interim financial data presented herein are
unaudited, but in the opinion of management reflect all adjustments necessary
for a fair presentation of such information. Results for interim periods should
not be considered indicative of results for a full year. Reference should be
made to the financial statements contained in the registrant's Annual Report on
Form 10-K for the year ended December 31, 2000 (the "10-K Report"). Information
relating to earnings per share is not presented because the registrant, Ford
Motor Credit Company ("Ford Credit"), is an indirect wholly owned subsidiary of
Ford Motor Company ("Ford" or the "company").
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Income
and of Earnings Retained for Use in the Business
For the Periods Ended March 31, 2001, and 2000
(in millions)
First Quarter
--------------------------------
2001 2000
------------- -------------
(Unaudited)
Financing revenue
Operating leases $ 2,925.0 $ 2,567.9
Retail 2,101.9 1,970.9
Wholesale 720.6 540.2
Other 130.6 124.4
--------- ---------
Total financing revenue 5,878.1 5,203.4
Depreciation on operating leases (2,121.4) (1,858.4)
Interest expense (2,426.0) (2,069.7)
---------- ----------
Net financing margin 1,330.7 1,275.3
Other revenue
Insurance premiums earned 59.8 59.6
Investment and other income 532.5 266.7
--------- ---------
Total financing margin and revenue 1,923.0 1,601.6
Expenses
Operating expenses 634.8 586.7
Provision for credit losses 617.9 377.5
Other insurance expenses 44.6 60.3
--------- ---------
Total expenses 1,297.3 1,024.5
--------- ---------
Income before income taxes and minority interests 625.7 577.1
Provision for income taxes 232.1 214.2
--------- ---------
Income before minority interests 393.6 362.9
Minority interests in net income of subsidiaries 0.1 9.8
--------- ---------
Net income 393.5 353.1
Earnings retained for use in the business
Beginning of period 8,272.3 6,855.5
Dividends (250.0) (5.4)
---------- ----------
End of period $ 8,415.8 $ 7,203.2
========== ==========
The accompanying notes are an integral part of the financial statements.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Balance Sheet
(in millions)
March 31, December 31, March 31,
2001 2000 2000
---------------- ---------------- -----------------
(Unaudited) (Unaudited)
Assets
Cash and cash equivalents $ 1,075.6 $ 1,123.4 $ 1,378.8
Investments in securities 557.2 547.4 543.6
Finance receivables, net 123,548.3 122,738.4 114,373.9
Net investment, operating leases 38,730.4 38,457.0 35,517.5
Retained interest in securitized assets 3,929.1 3,686.6 2,949.4
Notes and accounts receivable from affiliated companies 2,072.9 2,489.1 2,750.9
Other assets 5,242.8 5,215.9 4,221.0
---------------- ------------- ---------------
Total assets $ 175,156.3 $ 174,257.8 $ 161,735.1
================ ============== ================
Liabilities and Stockholder's Equity
Liabilities
Accounts payable
Trade, customer deposits, and dealer reserves $ 4,429.2 $ 4,758.1 $ 3,496.3
Affiliated companies 1,397.4 1,036.9 1,158.9
---------------- -------------- ----------------
Total accounts payable 5,826.6 5,795.0 4,655.2
Debt 147,947.5 146,294.7 136,696.4
Deferred income taxes 4,479.3 4,495.4 3,881.1
Other liabilities and deferred income 5,228.1 5,468.8 4,556.2
---------------- --------------- ----------------
Total liabilities $ 163,481.5 $ 162,053.9 $ 149,788.9
Minority interests in net assets of subsidiaries 17.3 17.3 421.5
Stockholder's Equity
Capital stock, par value $100 a share, 250,000 shares
authorized, issued and outstanding 25.0 25.0 25.0
Paid-in surplus (contributions by stockholder) 4,265.8 4,273.0 4,635.5
Accumulated other comprehensive loss (1,049.1) (383.7) (339.0)
Retained earnings 8,415.8 8,272.3 7,203.2
--------------- --------------- ----------------
Total stockholder's equity 11,657.5 12,186.6 11,524.7
--------------- --------------- ----------------
Total liabilities and stockholder's equity $ 175,156.3 $ 174,257.8 $ 161,735.1
================ =============== ================
The accompanying notes are an integral part of the financial statements.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Cash Flows
For the Periods Ended March 31, 2001 and 2000
(in millions)
First Quarter
------------------------------
2001 2000
------------ -------------
(Unaudited)
Cash flows from operating activities
Net income $ 393.5 $ 353.1
Adjustments to reconcile net income to net
cash provided by operating activities
Provision for credit losses 617.9 377.5
Depreciation and amortization 2,265.4 1,975.8
Gain on sales of finance receivables (211.1) (0.4)
Increase in deferred income taxes 274.1 162.4
Decrease/(increase) in other assets 74.9 (41.6)
(Decrease)/increase in other liabilities (1,513.9) 607.6
All other operating activities (4.2) 50.0
----------- -----------
Net cash provided by operating activities 1,896.6 3,484.4
----------- -----------
Cash flows from investing activities
Purchase of finance receivables (other than wholesale) (14,192.6) (18,019.7)
Collection of finance receivables (other than wholesale) 8,733.0 12,697.3
Purchase of operating lease vehicles (6,804.7) (6,189.2)
Liquidation of operating lease vehicles 4,247.5 3,699.0
Increase in wholesale receivables (2,713.6) (1,268.7)
Decrease in notes receivable with affiliates 277.0 3,313.9
Proceeds from sale of receivables 7,102.0 2,806.8
Purchase of investment securities (201.7) (139.9)
Proceeds from sale/maturity of investment securities 191.9 120.7
All other investing activities (117.6) 3.6
----------- -----------
Net cash used in investing activities (3,478.8) (2,976.2)
----------- -----------
Cash flows from financing activities
Proceeds from issuance of long-term debt 13,704.0 11,883.9
Principal payments on long-term debt (3,531.4) (4,537.6)
Decrease in short-term debt (8,394.1) (7,348.7)
Cash dividends paid (250.0) (150.0)
All other financing activities 103.9 147.4
----------- -----------
Net cash provided/used by financing activities 1,632.4 (5.0)
----------- -----------
Effect of exchange rate changes on cash and cash equivalents (98.0) (66.6)
----------- -----------
Net change in cash and cash equivalents (47.8) 436.6
Cash and cash equivalents, beginning of period 1,123.4 942.2
----------- -----------
Cash and cash equivalents, end of period $ 1,075.6 $ 1,378.8
=========== ============
Supplementary cash flow information
Interest paid $ 2,552.8 $ 1,565.8
Taxes paid 66.1 30.8
The accompanying notes are an integral part of the financial statements.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 1. Finance Receivables, Net (in millions)
March 31, December 31, March 31,
2001 2000 2000
---------------- --------------- -----------------
(Unaudited) (Unaudited)
Retail $ 78,593.9 $ 80,797.2 $ 79,351.1
Wholesale 36,879.8 34,122.0 28,257.1
Other 9,458.2 9,129.9 8,016.0
----------------- ---------------- ----------------
Total finance receivables, net of unearned income 124,931.9 124,049.1 115,624.2
Less: Allowance for credit losses (1,383.6) (1,310.7) (1,250.3)
----------------- ---------------- -----------------
Finance receivables, net $ 123,548.3 $ 122,738.4 $ 114,373.9
================ =============== ================
Note 2. Debt (in millions)
March 31, 2001
----------------------------------
Weighted Average
March 31, December 31, March 31,
Interest Rates (a) Maturities 2001 2000 2000
-------------------- ------------ ----------------- --------------- --------------
(Unaudited) (Unaudited)
Payable Within One Year:
Commercial paper $ 33,528.4 $ 42,254.8 $ 37,336.4
Other short-term debt (b) 8,113.8 7,875.1 6,288.0
--------------- -------------- --------------
Total short-term debt 41,642.2 50,129.9 43,624.4
Long-term indebtedness payable within
one year (c) 16,916.9 12,856.6 21,696.3
--------------- -------------- --------------
Total payable within one year 58,559.1 62,986.5 65,320.7
Payable After One Year:
Unsecured senior indebtedness
Notes (d) 6.41% 2002-2078 89,451.5 83,402.6 68,146.4
Debentures - - - - 2,801.4
Unamortized discount (63.1) (94.4) (88.4)
---------------- --------------- --------------
Total unsecured senior indebtedness 89,388.4 83,308.2 70,859.4
Unsecured long-term subordinated notes - - - - 516.3
---------------- --------------- --------------
Total payable after one year 89,388.4 83,308.2 71,375.7
---------------- --------------- --------------
Total debt $ 147,947.5 $ 146,294.7 $ 136,696.4
================ =============== ==============
(a) Excludes the effects of interest rate swap agreements.
(b) Includes $978.6 million, $571.0 million, and $672.5 million with
affiliated companies at March 31, 2001, December 31, 2000, and
March 31, 2000, respectively.
(c) Includes $844.0 million, $912.6 million, and $691.6 million with
affiliated companies at March 31, 2001, December 31, 2000, and
March 31, 2000, respectively.
(d) Includes $1,556.4 million, $1,663.8 million, and $2,528.6 million with
affiliated companies at March 31, 2001, December 31, 2000, and
March 31, 2000, respectively.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 3. SFAS 133 ("Accounting for Derivative Instruments and Hedges")
Ford Credit adopted SFAS No. 133, Accounting for Derivative Instruments and
Hedging Activities, as amended by SFAS No. 137 and SFAS No. 138 on January 1,
2001. Ford Credit operates in many countries worldwide, and is exposed to market
risks, including the effect of changes in interest rates and foreign currency
exchange rates. These financial exposures are monitored and managed by Ford
Credit as an integral part of the company's overall risk management program,
which recognizes the unpredictability of financial markets and seeks to reduce
the potentially adverse effect on Ford Credit's results. Ford Credit uses
derivative financial instruments to manage the exposures to fluctuations in
interest rates and exchange rates.
Interest rate risk is managed by entering into interest rate swap agreements to
change the interest rate characteristics of Ford Credit's debt to match the
interest rate characteristics of related assets. These interest rate derivatives
are designated as either cash flow or fair-value hedges. Exchange rate risk is
managed by use of foreign currency agreements, including forward contracts
and swaps. In addition, Ford Credit holds other derivatives that
presently do not qualify for hedge accounting treatment under SFAS No. 133.
Derivatives accounted for as cash flow hedges comprise most of the balance of
SFAS No. 133 activity reported as a part of stockholders' equity.
Ford Credit's strategy is to use derivatives to manage specific economic risks
to changes in interest rates and exchange rates. Ford Credit does not use
derivatives for speculative purposes. For more information on Ford Credit's
derivative strategy, refer to Note 1 to the Consolidated Financial Statements in
Form 10-K.
Adverse adjustments to income (not material to total Ford Credit results) and to
stockholders' equity in the first quarter including transition adjustment were
(in millions):
Pre-tax income $ (20)*
Net income (13)
Stockholders' equity (481)**
* Recorded in investment and other income
** Recorded in accumulated other comprehensive income
Of the $481 million loss recorded in stockholders' equity, (including $214
million transition adjustment on January 1) Ford Credit does not expect to
reclassify any gains or losses to earnings during the next twelve months.
Consistent with Ford Credit's comprehensive, non-speculative risk-management
practices, future reclassifications are not anticipated to have a material
effect on net Ford Credit earnings.
Note 4. Comprehensive Income (in millions)
First Quarter
------------------------------
2001 2000
------------ ------------
(Unaudited)
Net income $ 393.5 $ 353.1
Other comprehensive income (665.4) (41.0)
------------- -------------
Total comprehensive income $ (271.9) $ 312.1
============= =============
Other comprehensive income includes foreign currency translation adjustments,
net unrealized gains and losses on investments in securities, retained interests
in securitized assets, and unrealized gains and losses on derivative
instruments (Note 3).
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes to Financial Statements
Note 5. Segment Information (in millions)
Ford Credit manages its operations through two segments, Ford Credit North
America and Ford Credit International. In the Second Quarter of 2000, the
Company merged the Personal Financial Services segment into these segments.
Ford Credit Ford Credit
North Ford Credit Eliminations/ Financial
America International Reclassifications * Statements
---------------- --------------- ------------------- ---------------
(Unaudited)
First Quarter
- --------------------------------------
2001
Revenue $ 6,065.0 $ 871.4 $ (466.0) $ 6,470.4
Income
Income before income taxes 557.6 88.8 (20.7) 625.7
Provision for income taxes 208.4 31.1 (7.4) 232.1
Net income 349.2 57.7 (13.4) 393.5
Other disclosures
Depreciation on operating leases 1,919.7 104.3 97.4 2,121.4
Interest expense 2,386.7 447.5 (408.2) 2,426.0
Finance receivables
(including net investment
operating leases) 163,022.9 28,547.7 (29,291.9) 162,278.7
Total assets 163,036.3 31,832.2 (19,712.2) 175,156.3
2000
Revenue $ 4,887.4 $ 905.8 $ (263.5) $ 5,529.7
Income
Income before income taxes 462.3 120.9 (6.1) 577.1
Provision for income taxes 173.5 42.7 (2.0) 214.2
Net income 288.8 78.2 (13.9) 353.1
Other disclosures
Depreciation on operating leases 1,667.1 183.1 8.2 1,858.4
Interest expense 1,950.5 388.5 (269.3) 2,069.7
Finance receivables
(including net investment
operating leases 142,710.6 28,329.6 (21,148.8) 149,891.4
Total assets 147,757.6 32,010.8 (18,033.3) 161,735.1
* Includes the impact of SFAS No. 133, Accounting for Derivative Instruments
and Hedging Activities.
Exhibit 12-A
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Calculation of Ratio of Earnings to Fixed Charges
(in millions)
Three Months For the Years Ended December 31
----------------------- ---------------------------------------------------------------------
2001 2000 2000 1999 1998 1997 1996
------------ ------------- --------- -------- -------- -------- ---------
(Unaudited) (Unaudited)
Earnings
Income before income taxes $ 625.7 $ 577.1 $ 2,495.0 $ 2,103.8 $ 1,812.2 $ 1,806.0 $ 2,240.2
Less equity in net income of
affiliated companies (0.1) 20.5 22.0 24.9 2.3 1.0 55.3
Fixed charges 2,435.1 2,076.8 9,001.6 7,219.3 6,936.8 6,294.4 6,257.9
----------- ---------- ----------- ---------- --------- ----------- ----------
Earnings before fixed
charges $ 3,060.9 $ 2,633.4 $ 11,474.6 $ 9,298.2 $ 8,746.7 $ 8,099.4 $ 8,442.8
========== ========== =========== =========== ========== =========== ==========
Fixed Charges
Interest expense $ 2,426.0 $ 2,069.7 $ 8,970.1 $ 7,193.4 $ 6,910.4 $ 6,268.2 $ 6,235.7
Rents 9.1 7.1 31.5 25.9 26.4 26.2 22.2
---------- ---------- ----------- ----------- ----------- ----------- ----------
Total fixed charges $ 2,435.1 $ 2,076.8 $ 9,001.6 $ 7,219.3 $ 6,936.8 $ 6,294.4 $ 6,257.9
========== ========== =========== =========== =========== =========== ==========
Ratio of earnings to fixed
charges 1.3 1.3 1.3 1.3 1.3 1.3 1.3
=========== =========== ============ =========== =========== =========== ===========
For purposes of the Ford Credit ratio, earnings consist of the sum of pre-tax
income from continuing operations before adjustment for minority interests in
consolidated subsidiaries, plus fixed charges. Fixed charges consist of
interest on borrowed funds, amortization of debt discount, premium, and issuance
expense, and one-third of all rental expense (the proportion deemed
representative of the interest factor).
Ford Credit Liquidity and Capital Resources
Ford Credit's outstanding debt at March 31, 2001 and at the end of each of the
last four years was as follows (in millions):
December 31
March 31, -------------------------------------------------------------------------
2001 2000 1999 1998 1997
--------------- -------------- -------------- -------------- --------------
(Unaudited)
Commercial paper & STBAs (a) $ 34,732 $ 43,627 $ 43,078 $ 48,636 $ 42,311
Other short-term debt (b) 6,910 6,503 6,770 4,997 3,897
Long term debt
(including current portion) (c) 106,305 96,165 83,226 61,334 54,517
-------------- ------------- ------------- ------------- --------------
Total debt $ 147,947 $ 146,295 $ 133,074 $ 114,967 $ 100,725
=============== ============== ============== ============== ==============
United States $ 117,120 $ 116,427 $ 104,186 $ 85,394 $ 78,443
Europe 15,254 14,866 14,510 16,653 12,491
Other international 15,573 15,002 14,378 12,920 9,791
-------------- ------------- ------------- ------------- -------------
Total debt $ 147,947 $ 146,295 $ 133,074 $ 114,967 $ 100,725
=============== ============== ============== ============== ==============
- - - - -
a) Short-term borrowing agreements with bank trust departments. Includes
$1,031.0 million with an affiliated company at December 31, 1999. There
were no outstanding balances with affiliates at March 31, 2001,
December 31, 2000, December 31, 1998 or December 31, 1997.
b) Includes $979 million, $571 million, $718 million, $989 million and $831
million with an affiliated company at March 31, 2001,
December 31, 2000, December 31, 1999, December 31, 1998 and
December 31, 1997, respectively.
c) Includes $2,400 million, $2,578 million, $3,457 million, $2,878 million,
and $3,547 million with affiliated companies at March 31, 2001,
December 31, 2000, December 31, 1999, December 31, 1998, and
December 31, 1997, respectively.
Support facilities represent additional sources of funds, if required. At
March 31, 2001, Ford Credit had approximately $19.1 billion of contractually
committed facilities. In addition, approximately $7.5 billion of Ford lines of
credit may be used by Ford Credit at Ford's option. These credit lines have
various maturity dates through June 30, 2005 and may be used, at Ford Credit's
option, by any of its direct or indirect majority-owned subsidiaries. Any such
borrowings will be guaranteed by Ford Credit. Banks also provide $1.4 billion
of contractually committed liquidity facilities to support Ford Credit's asset
backed commercial paper program.
Additionally, at March 31, 2001, there were approximately $4.9 billion of
contractually committed facilities available for FCE Bank plc's ("FCE Bank")
use. In addition, $598 million of Ford credit lines may be used by FCE Bank at
Ford's option. The lines have various maturity dates through June 30, 2005 and
may be used, at FCE Bank's option, by any of its direct or indirect
majority-owned subsidiaries. Any such borrowings will be guaranteed by FCE
Bank.