Global full-year pre-tax profit for Ford Credit, captive finance provider to Ford Motor Company, was $1,697m (£1,094m) for 2012. Meanwhile, GM Financial, the captive finance arm of General Motors (GM), recorded fourth-quarter earnings before tax of $100m in 2012, compared to $200m in Q4 2011 and $200m in Q3 2012.
Despite dropping 41.66% on the $2,404m profit recorded for 2011, Ford said the performance of Ford Credit was "solid" and in line with expectations published at the end of the previous year.
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Ford Credit’s pre-tax profit for the fourth quarter of 2012 was down 18.18% year-on-year to $414m, a shallower decline than the 35.87% drop recorded for the third quarter of 2012.
Predictions made by Ford for the performance of Ford Credit in 2013 included managed receivables by the end of the year to stand at between $95bn and $105bn, managed leverage ratio to be between 8:1 and 9:1 and planned distributions of $200m.
GM Financial earnings before tax for the full-year stood at $700m, up from $600m in 2011.
Although appearing to represent a small proportion of its manufacturer parent’s balance sheet, when compared to other captive finance providers, GM Financial was only created in 2010. Many of GM Financial’s global operations are due to begin later this year when it re-acquires units of GM’s old captive finance business GMAC, which was known as Ally Financial after divestiture from GM.
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By GlobalDataOverall Ford Motor Company’s 2012 pre-tax profit was $8bn, down 9.1% year-on-year, with net income down 5.1% to $5.7bn.
Ford did, however, record Q4 pre-tax profit of $1.7bn, up 51.4% on Q4 2011, its highest fourth-quarter pre-tax profit for more than ten years and the company’s 14th consecutive quarter of pre-tax operating profit. Net income for Q4 was $1.6bn, up 54.6% year-on-year.
Overall revenue for GM was up for the quarter, by 3.42% year-on-year, to $39.3bn, and up 1.33% over 2012 to $152.3bn. Overall earnings before tax for the quarter rose 9.1% to $1.2bn, but fell 4.82% against the 2011 figure to $7.9bn.
richard.brown@timetric.com
