Ford Credit Reports Third Quarter Pre-Tax Profit of $427 Million; Net Income of $272 Million*

 Ford Credit Reports Third Quarter Pre-Tax Profit of $427 Million; Net Income
                               of $272 Million*

PR Newswire

DEARBORN, Mich., Oct. 24, 2013

DEARBORN, Mich., Oct. 24, 2013 /PRNewswire/ --Ford Motor Credit Company
reported a pre-tax profit of $427million in the third quarter of 2013,
compared with $393 million a year earlier. The increase inpre-tax earnings is
more than explained by higher volume in North America. The drivers of higher
volume were an increase in leasing, reflecting changes in Ford's marketing
programs, as well as higher non-consumer finance receivables due to higher
dealer stocks.

Ford Credit's net income was $272 million in the third quarter, compared with
$355 million in the previous year.

"We remain solidly on track for 2013," Ford Credit Chairman and CEO Bernard
Silverstone said. "We are growing along with Ford and continue to offer a full
range of financing products and the world-class services that support Ford
sales, our dealers and customers."

On September 30, 2013, Ford Credit's total receivables were $98billion,
compared with $90billion at year-end 2012. Managed receivables were
$99billion at September 30, 2013, up from $91 billion at year-end 2012.
Managed leverage was 8.2 to 1 at September 30, 2013, compared with 8.3 to 1
at year-end 2012.

Ford Credit continues to expect full year 2013 pre-tax profits to be about
equal to 2012. Ford Credit now expects year-end managed receivables of about
$100 billion, which is within the prior range of$97 billion to $102 billion,
and distributions of about $400 million, up from $200 million previously
planned, reflecting a fourth quarter reduction in Ford Credit's tax liability.

# # #

About Ford Motor Credit Company
Ford Motor Credit Company LLC has provided dealer and customer financing to
support the sale of Ford Motor Company products since 1959. Ford Credit is a
wholly owned subsidiary of Ford. For more information, visit

— — — — —
* The financial results discussed herein are presented on a preliminary basis;
final data will be included in Ford Credit's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2013.

Risk Factors

Statements included or incorporated by reference herein may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
expectations, forecasts, and assumptions by our management and involve a
number of risks, uncertainties, and other factors that could cause actual
results to differ materially from those stated, including, without limitation:

  oDecline in industry sales volume, particularly in the United States or
    Europe, due to financial crisis, recession, geopolitical events, or other
  oDecline in Ford's market share or failure to achieve growth;
  oLower-than-anticipated market acceptance of Ford's new or existing
  oMarket shift away from sales of larger, more profitable vehicles beyond
    Ford's current planning assumption, particularly in the United States;
  oAn increase in or continued volatility of fuel prices, or reduced
    availability of fuel;
  oContinued or increased price competition resulting from industry excess
    capacity, currency fluctuations, or other factors;
  oFluctuations in foreign currency exchange rates, commodity prices, and
    interest rates;
  oAdverse effects resulting from economic, geopolitical, or other events;
  oEconomic distress of suppliers that may require Ford to provide
    substantial financial support or take other measures to ensure supplies of
    components or materials and could increase costs, affect liquidity, or
    cause production constraints or disruptions;
  oWork stoppages at Ford or supplier facilities or other limitations on
    production (whether as a result of labor disputes, natural or man-made
    disasters, tight credit markets or other financial distress, production
    constraints or difficulties, or other factors);
  oSingle-source supply of components or materials;
  oLabor or other constraints on Ford's ability to maintain competitive cost
  oSubstantial pension and postretirement health care and life insurance
    liabilities impairing our liquidity or financial condition;
  oWorse-than-assumed economic and demographic experience for postretirement
    benefit plans (e.g.,discount rates or investment returns);
  oRestriction on use of tax attributes from tax law "ownership change;"
  oThe discovery of defects in vehicles resulting in delays in new model
    launches, recall campaigns, or increased warranty costs;
  oIncreased safety, emissions, fuel economy, or other regulations resulting
    in higher costs, cash expenditures, and/or sales restrictions;
  oUnusual or significant litigation, governmental investigations, or adverse
    publicity arising out of alleged defects in products, perceived
    environmental impacts, or otherwise;
  oA change in requirements under long-term supply arrangements committing
    Ford to purchase minimum or fixed quantities of certain parts, or to pay a
    minimum amount to the seller ("take-or-pay" contracts);
  oAdverse effects on results from a decrease in or cessation or clawback of
    government incentives related to investments;
  oInherent limitations of internal controls impacting financial statements
    and safeguarding of assets;
  oCybersecurity risks to operational systems, security systems, or
    infrastructure owned by Ford, Ford Credit, or a third-party vendor or
  oFailure of financial institutions to fulfill commitments under committed
    credit and liquidity facilities;
  oInability of Ford Credit to access debt, securitization, or derivative
    markets around the world at competitive rates or in sufficient amounts,
    due to credit rating downgrades, market volatility, market disruption,
    regulatory requirements, or other factors;
  oHigher-than-expected credit losses, lower-than-anticipated residual
    values, or higher-than-expected return volumes for leased vehicles;
  oIncreased competition from banks or other financial institutions seeking
    to increase their share of financing Ford vehicles; and
  oNew or increased credit, consumer, or data protection or other regulations
    resulting in higher costs and/or additional financing restrictions.

We cannot be certain that any expectation, forecast, or assumption made in
preparing forward-looking statements will prove accurate, or that any
projection will be realized. It is to be expected that there may be
differences between projected and actual results. Our forward-looking
statements speak only as of the date of their initial issuance, and we do not
undertake any obligation to update or revise publicly any forward-looking
statement, whether as a result of new information, future events, or
otherwise. For additional discussion, see "Item 1A, Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2012 as updated by
our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.



For the Periods Ended September 30, 2012 and 2013

(in millions)
                        Third Quarter              First Nine Months
                        2012           2013        2012          2013
                        (unaudited)                (unaudited)
Financing revenue
Operating leases        $    872       $   1,089   $   2,478     $   2,994
Retail                  741            701         2,251         2,079
Wholesale               306            342         1,027         1,071
Other                   41             43          118           125
Total financing revenue 1,960          2,175       5,874         6,269
Depreciation on
vehicles subject to     (640)          (830)       (1,808)       (2,197)
operating leases
Interest expense        (741)          (691)       (2,318)       (2,056)
Net financing margin    579            654         1,748         2,016
Other revenue
Insurance premiums      24             28          75            87
Other income, net       85             81          207           204
Total financing margin  688            763         2,030         2,307
and other revenue
Operating expenses      240            289         731           779
Provision for credit    42             32          (33)          81
Insurance expenses      13             15          49            59
Total expenses          295            336         747           919
Income before income    393            427         1,283         1,388
Provision for income    38             155         337           477
Net income              $    355       $   272     $   946       $   911
Certain prior period amounts in our Consolidated Income Statement were
reclassified to conform to current year presentation.

For the Periods Ended September 30, 2012 and 2013

(in millions)
                        Third Quarter              First Nine Months
                        2012           2013        2012          2013
                        (unaudited)                (unaudited)
Net income              $    355       $   272     $   946       $   911
Other comprehensive
income/(loss), net of
Foreign currency             185           176         141           (62)
Total other
comprehensive                185           176         141           (62)
income/(loss), net of
Comprehensive income    $    540       $   448     $   1,087     $   849


(in millions)
                                                   December31,  September30,
                                                   2012          2013
Cash and cash                                      $   9,189     $   9,045
Marketable securities                              2,106         2,405
Finance receivables,                               75,063        78,726
Net investment in                                  14,701        18,802
operating leases
Notes and accounts
receivable from                                    1,173         975
affiliated companies
Derivative financial                               1,256         865
Other assets                                       2,256         2,470
Total assets                                       $   105,744   $   113,288
Accounts payable
Customer deposits,
dealer reserves, and                               $   1,072     $   1,421
Affiliated companies                               234           511
Total accounts payable                             1,306         1,932
Debt                                               89,258        94,483
Deferred income taxes                              1,669         1,712
Derivative financial                               400           555
Other liabilities and                              3,458         4,157
deferred income
Total liabilities                                  96,091        102,839
Shareholder's interest                             5,274         5,217
Accumulated other                                  743           741
comprehensive income
Retained earnings                                  3,636         4,491
Total shareholder's                                9,653         10,449
Total liabilities and                              $   105,744   $   113,288
shareholder's interest
The following table includes assets to be used to settle the liabilities of
the consolidated variable interest entities ("VIEs"). These assets and
liabilities are included in the consolidated balance sheet above.
                                                   December31,  September30,
                                                   2012          2013
Cash and cash                                      $   2,877     $   2,705
Finance receivables,                               47,190        43,106
Net investment in                                  6,308         6,963
operating leases
Derivative financial                               4             4
Debt                                               $   40,245    $   38,537
Derivative financial                               134           76

In evaluating Ford Credit's financial performance, Ford Credit management uses
financial measures based on Generally Accepted Accounting Principles ("GAAP"),
as well as financial measures that include adjustments from GAAP.
Net Finance Receivables                            December31,  September30,
and Operating Leases                               2012          2013
Receivables (a)                                    (in billions)
 Finance Receivables
– North America Segment
Retail financing                                   $   39.5      $   40.5
Dealer financing (b)                               19.5          20.4
Other                                              1.1           0.9
Total North America
Segment – finance                                  60.1          61.8
Finance Receivables –
International Segment
Retail financing                                   9.0           10.3
Dealer financing (b)                               7.5           8.1
Other                                              0.4           0.4
Total International
Segment – finance                                  16.9          18.8
Unearned interest                                  (1.5)         (1.5)
Allowance for credit                               (0.4)         (0.4)
Finance receivables,                               75.1          78.7
Net investment in                                  14.7          18.8
operating leases
Total receivables                                  $   89.8      $   97.5
Memo:Total managed                               $   91.3      $   99.0
receivables (c)
Managed Leverage                                   December31,  September30,
Calculation                                        2012          2013
                                                   (in billions)
Total debt (d)                                     $   89.3      $   94.5
Adjustments for cash,
cash equivalents, and                              (10.9)        (11.0)
marketable securities
Adjustments for
derivative accounting                              (0.8)         (0.2)
Total adjusted debt                                $   77.6      $   83.3
Equity (g)                                         $   9.7       $   10.4
Adjustments for
derivative accounting                              (0.3)         (0.3)
Total adjusted equity                              $   9.4       $   10.1
Managed leverage (to 1)
= Total adjusted debt /                            8.3           8.2
Total adjusted equity
statement leverage (to                             9.2           9.0
1) = Total debt /

    Includes finance receivables (retail and wholesale) sold for legal
    purposes and net investment in operating leases included in securitization
    transactions that

    do not satisfy the requirements for accounting sale treatment.These
    receivables and operating leases are reported on Ford Credit's balance
(a) sheet and are

    available only for payment of the debt issued by, and other obligations
    of, the securitization entities that are parties to those securitization
    transactions; they

    are not available to pay the other obligations of Ford Credit or the
    claims of Ford Credit's other creditors.
(b) Dealer financing primarily includes wholesale loans to dealers to finance
    the purchase of vehicle inventory.
(c) Equals total receivables, excluding unearned interest supplements  of
    $(1.5) billion at December31, 2012 andSeptember30, 2013.
    Includes debt reported on Ford Credit's balance sheet that is issued in
    securitization transactions and payable only out of collections on the
(d) underlying securitized assets and related enhancements. Ford Credit holds
    the right to receive the excess cash flows not needed to pay the debt
    issued by, and other obligations of, the securitization entities that are
    parties to those securitization transactions.
(e) Excludes marketable securities related to insurance activities.
    Primarily related to market valuation adjustments to derivatives due to
(f) movements in interest rates. Adjustments to debt are related to
    designated fair value hedges and adjustments to equity are related to
    retained earnings.
(g) Shareholder's interest reported on Ford Credit's balance sheet.

SOURCE Ford Motor Credit Company

Contact: Margaret Mellott, Ford Credit, Communications, 313.322.5393,; Steve Dahle, Ford Fixed Income, Investment Community,
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