Pre-tax profit for 2013 at Ford Motor Credit will be "about equal to 2012", the company has told investors as it announced details of its portfolio at the end of the first quarter
Ford Credit said it expected managed receivables at the year-end to be in the range of $95-105bn, (£62-68bn), with total managed receivables at the end of the first quarter of 2013 standing at $93.9bn, up 2.85% from the end of the final quarter of 2012.
Quarter-on-quarter, retail financing dipped while dealer financing increased, both slightly, in the company’s North American and international segments. Ford Credit’s retail book in North America fell from $39.5bn at the end of 2012 to $39.4bn as at 31 March 2013, during which time its international book dropped from $9bn to $8.8bn. Meanwhile, Ford Credit dealer financing in North America rose from $19.5bn to $20.7bn and from $7.5bn to $8 in its international segment.
During its presentation at the American Financial Services Association Credit Summit for Fixed Income Investors in Boston, Massachusetts, Ford Credit said it expected its managed leverage ratio to remain around 8:1 or 9:1 with distributions of around $200m.
The finance arm of the US manufacturer also reported net income for 2012 of $1.2bn, down from just under $1.8bn for 2011.
The company remained confident and predicted a return on equity in "high single digits" by the middle of the decade, by which time Ford would be operating with a global automotive operating margin of 8-9%.