Ford Motor Credit Co.’s net income increased by 1.4% in the third quarter 2012 from the same quarter of 2011 with the financial arm earning a net income of $355 million in the quarter.
However, since this increase is largely due to a one-time non-cash infusion, the credit arm’s pre-tax numbers were down 32.4% from the same quarter 2011. Explaining this, the company said in an earnings release, “The decrease in pre-tax earnings is more than explained by fewer lease terminations, which resulted in fewer vehicles sold at a gain, lower financing margin, and the non-recurrence of credit loss reserve reductions.”
Despite this dramatic decrease, the American carmaker says all is well in Detroit. Chairman and Chief Executive Mike Bannister said Ford Credit is “on track for solid full-year results, and credit-loss performance continues to be in line with historical lows.”