Tue, Oct 29, 10:03 AM (65 days ago)
For the third quarter ended September 30, 2024, Ford Motor Credit Company LLC (FMC, NYSE: F) reported a significant increase in earnings before taxes (EBT), rising to $544 million from $358 million year-over-year. This increase was primarily driven by a higher financing margin, which benefited from increased retail financing and operating lease volumes, despite challenges such as lower auction values and elevated return rates on leases. Total net receivables grew to $142.2 billion, reflecting a 13% increase, attributed to both consumer and non-consumer financing. The net income for the quarter also showed robust growth, reaching $493 million compared to $239 million in the prior year. The company’s cash position decreased to $8.6 billion from $10.9 billion at year-end 2023, while liquidity remained strong at $29.6 billion. The allowance for credit losses was adjusted to reflect an improved macroeconomic outlook, despite an uptick in credit losses. FMC maintained a leverage ratio of 9.7:1, targeting a range of 9:1 to 10:1. Looking ahead, the company anticipates full-year EBT of around $1.6 billion, amid ongoing market uncertainties and operational challenges.