Ford Motor Credit Q4 Net Profit Surges; Sees Flat Pre-tax Profit In FY14

(RTTNews) - Ford Motor Credit Company LLC, a unit of automaker Ford Motor Co. (F), Tuesday reported that its fourth-quarter net income surged to $568 million from last year's $268 million. The results mainly reflected a reduction in its tax liability resulting from favorable one-time tax items.

Meanwhile, Ford Credit's pre-tax profit was $368 million, lower than last year's $414 million. The company attributed the decline in pre-tax profit to unfavorable residual performance related to lower auction values and lower financing margin, both in North America, as well as credit loss reserve changes.

Total financing revenue grew to $2.07 billion from $1.83 billion a year ago.

Looking ahead for fiscal 2014, Ford Credit expects pre-tax profit to be about equal to 2013's $1.76 billion. The company also expects managed receivables at year-end of about $110 billion.

Ford Credit Chairman and CEO Bernard Silverstone said, "The team delivered solid results in all the key measures of our business. We remain focused on continuous improvement and providing ongoing support to Ford, our dealers and our customers in 2014."