Ford Motor Credit Earns $334 Million In Third Quarter of 2007

The decrease in earnings primarily reflected the non-recurrence of credit loss reserve reductions, higher depreciation expense for leased vehicles and higher borrowing costs.

In the third quarters of 2007 and 2006, pre-tax earnings were $341 million and $521 million, excluding the net gains related to market valuation adjustments from derivatives, which were $205 million and $209 million, respectively.

Ford Motor Credit expects to earn on a pre-tax basis $1.3 billion to $1.4 billion this year, excluding the impact of gains and losses related to market valuation adjustments from derivatives, consistent with the previous estimate.

"Our sound risk management practices, high-quality portfolio, strong liquidity and ongoing restructuring continue to produce solid operating results," said Mike Bannister, chairman and CEO. "As we effectively execute the fundamentals of the business, we remain on track to meet our earnings outlook."

On September 30, 2007, Ford Motor Credit's on-balance sheet net receivables totaled $141 billion, compared with $135 billion at year-end 2006. Managed receivables were $148 billion, largely unchanged compared with December 31, 2006.

On September 30, 2007, managed leverage was 10.1 to 1. -Ford Motor