DEARBORN, Mich. — Ford Motor Credit revealed specifics of its 2009 revenue turnaround and how a nearly $3 billion improvement occurred.

The company posted a net income total of $1.3 billion last year. It calculated into an improvement of $2.8 billion, stemming from a net loss of $1.5 billion in 2008.

Looking at the numbers on a pre-tax basis, Ford Credit earned $2 billion in 2009, compared with a loss of $2.6 billion in the previous year.

Excluding the $2.1 billion impairment charge for North America operating leases in the second quarter of 2008, Ford Credit incurred a pre-tax loss of $473 million in 2008.

Ford Credit executives listed several reasons for the sharp financial turnaround.

They indicated that the improvement in full year pre-tax earnings primarily reflected the non-recurrence of the impairment charge, lower depreciation expense for leased vehicles due to higher auction values, and a lower provision for credit losses, offset partially by lower volume.

Ford Credit also highlighted how it significantly reduced its operating costs in 2009 compared with the previous year.

Along with revealing its year-end financial standing, Ford Credit also detailed how the fourth quarter of 2009 unfolded.

During that quarter, Ford Credit said its net income was $440 million, an improvement of $668 million from a year earlier. On a pre-tax basis, Ford Credit earned $696 million in the fourth quarter of last year, compared with a loss of $372 million in the previous year.

Company officials based the improvement in pre-tax earnings primarily on lower depreciation expense for leased vehicles due to higher auction values and a lower provision for credit losses, offset partially by lower volume.

"Our profit and consistent, solid support of Ford Motor Co. dealers and customers in a very challenging economy demonstrate our unique value as Ford's financial services company," explained Ford Credit chairman and chief executive officer Mike Bannister.

"We remain well-positioned to help put people behind the wheels of Ford products as the economy improves," Bannister continued.

In other company financial news, Ford Credit said its on-balance sheet net receivables totaled $93 billion as of the close of 2009. The company compared that figure with $116 billion at year-end 2008.

Executives also mentioned that managed receivables were $95 billion at the end of last year. They noted how the total was down from $118 billion at year-end 2008.

Ford Credit noted that the lower receivables primarily reflected lower industry volumes, lower dealer stocks and the transition of Jaguar, Land Rover and Mazda financing to other finance providers.

Also at the close of last year, the company said its managed leverage was 7.3 to 1. Ford Credit also distributed $1.5 billion to its immediate parent, Ford Holdings LLC.

Ford Credit executives contend that they expect to be profitable this year. However, they said the profit total would be lower than 2009 figures based on lower average receivables and non-recurrence of certain favorable factors from last year.