Exhibit 99.1
Contact: Daniel Jarvis
Ford Credit
313-594-2527
djarvis1@ford.com
IMMEDIATE RELEASE
FORD CREDIT EARNS $839 MILLION IN 2001
4th Quarter Loss of $297 Million Reported
DEARBORN, Mich., January 17, 2002 - Ford Motor Credit Company reported
earnings of $839 million in 2001. This result included unusual charges
(included in Ford Motor Company's previously announced Revitalization Plan),
as well as the ongoing impact of SFAS 133 (Accounting for Derivative
Instruments and Hedging Activities). The unusual charges included strategic
partnering actions in Brazil, government initiatives in Argentina related to
currency devaluation and consumer debt, and voluntary employee separation
costs in North America. Together, these charges reduced net income by $361
million in 2001.
Excluding the charges discussed above, full-year earnings were $1.2 billion,
$336 million lower than in 2000. After-tax return on average equity was 9.5
percent in 2001, compared with 13.1 percent in 2000. Lower earnings in 2001
were primarily a result of a higher provision for credit losses, offset
partially by favorable volumes, margins, and investment and other income. The
higher provision for credit losses was in response to significant weakening
of economic conditions. The higher investment and other income resulted from
gains on the sale of receivables and higher interest income on retained
assets related to securitization transactions. Compared with 2000, Ford
Credit increased the use of securitization as a cost-effective source of
funds and, coupled with a falling interest rate environment, reported higher
gains on the sale of receivables.
In the fourth quarter of 2001, Ford Credit incurred a loss of $297 million.
Excluding the unusual charges and the impact of SFAS 133 discussed above,
Ford Credit earned $6 million, compared with earnings of $410 million in the
same period a year earlier. The reduction was more than accounted for by a
higher provision for credit losses.
"We responded to rapid changes in the economy by increasing our credit loss
reserves in the fourth quarter," said Greg Smith, President and COO of Ford
Credit. "In 2002, we will focus on improving profitability in our core
business and providing support for Ford Motor Company brands and dealers."
On December 31, 2001, Ford Credit's total owned receivables were $149
billion, compared with $161 billion a year earlier. The reduction reflects
higher sale of receivables in securitization transactions. Managed
receivables were $208 billion, compared with $190 billion a year earlier.
During the fourth quarter of 2001, Ford Credit made no dividend payment to
Ford Motor Company. On January 11, 2002, Ford Credit received a capital
contribution of $700 million.
Ford Credit is a wholly owned subsidiary of Ford Motor Company and is the
world's largest automotive finance company. Now in its 43rd year, Ford Credit
provides vehicle financing in 40 countries to more than 10 million customers
and more than 12,500 automotive dealers. More information about Ford Credit
can be found at www.fordcredit.com.
Ford Motor Credit Company and Consolidated Subsidiaries
OPERATING HIGHLIGHTS
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Income 4th Quarter Full Year
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Net Income (in Millions) 2001 2000 2001 2000
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Total Net Income $ (297) $ 410 $ 839 $ 1,536
Exclude Unusual Charges & SFAS 133
SFAS 133 $ (99) $ - $ (157) $ -
Revitalization Plan (204) - (204) -
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Total Unusual Charges & SFAS 133 $ (303) $ - $ (361) $ -
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Operating Net Income $ 6 $ 410 $ 1,200 $ 1,536
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Balance Sheet Year-End
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Assets (in Billions) 2001 2000
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Net Finance Receivables $ 109.7 $ 122.7
Net Investment in Operating Leases 39.3 38.5
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Total Net Finance Receivables (Owned Receivables) $ 149.0 $ 161.2
Other Assets 24.1 13.1
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Total Assets $ 173.1 $ 174.3
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Liabilities and Stockholder's Equity (in Billions)
Liabilities
Debt - Short -Term $ 22.7 $ 50.1
Debt - Long -Term 123.6 96.2
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Total Debt $ 146.3 $ 146.3
Other Liabilities 14.8 15.8
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Total Liabilities $ 161.1 $ 162.1
Minority Interests in Net Assets of Subsidiaries 0.0 0.0
Stockholder's Equity 12.0 12.2
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Total Liabilities and Stockholder's Equity $ 173.1 $ 174.3
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Memo: Shareholder Equity Excluding SFAS 133 (in Billions) a/ $ 12.5 $ 12.2
Managed Receivables (in Billions) 207.8 189.6
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Operating & Financial Metrics 4th Quarter Full Year
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Market Share 2001 2000 2001 2000
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Ford & Lincoln/Mercury Retail & Lease
United States 68.6 % 47.9 % 54.3 % 50.9 %
Europe 42.8 33.6 36.8 32.1
Ford & Lincoln/Mercury Wholesale United States 84.1 % 80.0 % 84.3 % 83.5 %
Europe 98.0 98.3 97.3 97.4
Contract Volume - New and Used Retail/Lease (in Thousands)
United States 1,054 743 3,819 3,525
Europe 247 177 988 795
Other International 176 177 738 686
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Total Contract Volume 1,477 1,097 5,545 5,005
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Financial Metrics (Excluding Unusual Charges & SFAS 133)
Return on Equity 9.5 %
Financial Statement Leverage 11.3 a/ b/
Managed Leverage 14.8 a/ b/
_ _ _ _ _
a/ Including a capital contribution of $700 million made on January 11, 2002,
the financial statement equity excluding SFAS 133 would be $13.2 billion
with leverage of 10.7:1 and managed leverage of 14.0:1.
b/ Excludes $1.9 billion of overborrowing portfolio