The Finance arm of major US manufacturer Ford Motor Credit made a pre-tax profit of $434m (£256m) in the second quarter of 2014, according to a statement released by Ford.
The profit is a reduction on last year’s $454m, or 4.4%, which Ford said was down to greater insured losses due to storm damage in the southern United States which affected dealer inventory.
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Net profit at the finance arm was also down, 4% year-on-year to $264m.
Net receivables at the firm improved by 7% by the end of the second quarter, to $107bn. Managed receivables were also up, at $111bn from $103bn the year before.
Ford Motor Credit’s chairman and chief executive officer Bernard Silverstone, said: "We have grown our receivables, maintaining our principles of prudent lending and our record of consistent profitability. Our focus on exceptional dealer and customer service and our integrated market approach with Ford Motor Company continue to benefit the enterprise."
Ford Credit has now changed its year end estimates to $115bn in receivables, up from the $110bn estimated at the beginning of the year. It has also raised its estimates for profitability at the year end from being equal to 2013.
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By GlobalData
