Case Corporation Announces First Quarter Results.RACINE Racine (rəsēn`), industrial city (1990 pop. 84,298), seat of Racine co., SE Wis., on Lake Michigan, at the mouth of the Root River; inc. 1848. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--April 19, 1999--
- Worldwide revenues of $1.2 billion, down 13 percent, with a net
loss of $48 million or ($.68) per share for the quarter,
primarily due to significant sales declines in high-margin, large
agricultural equipment and unfavorable economic conditions in
Brazil
- Case Capital's managed portfolio grows to a record $7 billion
Case Corporation (NYSE NYSE See: New York Stock Exchange :CSE (Certified Systems Engineer) See Microsoft certification. ) today announced a net loss of $48 million or ($.68) per share in the first quarter of 1999. In the prior year period, Case reported net income of $69 million or $.88 per share. The soft global economic picture continues to impact many of the markets for Case's products, particularly in key segments. The company previously announced production schedule adjustments, primarily in high-horsepower machines, driven by the drop in demand for agricultural equipment and ongoing economic uncertainties in several markets. As a result, revenues decreased 13 percent to $1.2 billion, down from $1.4 billion in the first quarter of 1998. The decline was partially offset by the impact of acquisitions and higher price realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. in both the agricultural and construction equipment businesses. Lower year-over-year earnings for the first quarter reflect significant sales declines in high-margin, large agricultural equipment. In addition, the ongoing unfavorable economic conditions in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. negatively impacted operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before by $15 million or $.16 per share. Higher pricing, the execution of previously announced management actions, and ongoing cost reduction initiatives partially offset these declines. "We executed well in the face of the agricultural market downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials lower retail demand for agricultural equipment," said Jean-Pierre Jean-Pierre may refer to:
Rosso is the major city of south-western Mauritania and capital of Trarza region. It ia situated on the Senegal River at the head of year-round navigation. , Case chairman and chief executive officer. "Our construction equipment business continued to perform well, and our strategy to grow and diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. business is increasingly successful." Management Actions Case is on target in its execution of a number of actions aimed at maximizing the company's performance in the current agricultural equipment market. The company continues to maintain lower production schedules to match retail demand. In the first quarter, global production of agricultural equipment was down 35 percent, as planned, compared to the prior year period. The company's previously announced program to reduce headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. by a total of 3,400 people by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. is also on target. The integration of the company's agricultural implement business is progressing on schedule with the consolidation of all product development and selected manufacturing of tillage and soil preparation equipment at the Case DMI (Desktop Management Interface) The first desktop management standard from the DMTF. Enabling PCs to be monitored from a central console, it was superseded by the DMTF's Common Information Model (see CIM). facility in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . This transfer facilitates the company's closure of its Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , plant which is expected to be completed ahead of schedule. The company is also transferring other products made in the Hamilton plant, including planting, seeding and materials handling equipment Mechanical devices for handling of supplies with greater ease and economy. See also materials handling. , to the Case Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. plant in North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , as well as to existing company joint ventures and third- party partners. In addition, the closure of the Hugo, Minnesota Hugo is a city in Washington County, Minnesota, United States. The population was 6,363 at the 2000 census. Geography According to the United States Census Bureau, the city has a total area of 93.3 km² (36.0 mi²). 88.0 km² (34.0 mi²) of it is land and 5.2 km² (2. , facility is progressing as planned. Nearly two-thirds of the anticipated $95 million to $100 million annual savings resulting from these and other related actions will be realized in 1999. Equipment Sales Case's worldwide retail unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. were down 6 percent from the prior year period, driven by lower agricultural equipment sales around the world. As a result of the lower retail demand and the aggressive production cuts taken last year and into 1999, wholesale sales were down 16 percent compared to the first quarter of 1998. Construction Equipment - Retail unit sales of construction equipment were flat when compared to the same period last year. Increases in retail sales of loader/backhoes, trenchers and telescopic handlers A telescopic handler, or telehandler, is a machine widely used in Agriculture and Industry. It is similar in appearance and function to a forklift, with the increased versatility of a single telescopic boom that can extend forwards and upwards from the vehicle. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. did not offset declines in other parts of the world. Retail sales in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. were down 46 percent, with sharp declines in loader/backhoes, wheel loaders and skid steers. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
retail unit sales of construction equipment were down modestly. In Asia
Pacific, retail unit sales of skid steers were up compared to the prior
year period, partially offsetting a decline in loader/backhoes.During the first quarter, Case introduced the next generation of its wheel loader A program routine that copies a program into memory for execution. line, the C Series. With new transmissions and a host of other improvements, the C Series machines were designed in response to customer requirements for optimum reliability and durability du·ra·ble adj. 1. Capable of withstanding wear and tear or decay: a durable fabric. 2. on the job site. In addition to the C Series, the company also introduced the 90 Series excavator ex·ca·va·tor n. An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue. excavator (eks´k and several XT skid steer steer castrated male cattle beast over a year of age. See also bullock, buller steer. steer bulling see bulling. steer Medtalk verb models to markets in western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , Africa and the Middle East. The company also expanded its construction equipment line with the introduction of a new, high-lift telescopic handler and a new 7-ton excavator built for contractors who want the versatility Versatility Franklin, Benjamin (1706–1790) American statesman, inventor, printer, author, scientist. [Am. Hist.: Benét, 366] George and productivity of a larger excavator, but the maneuverability ma·neu·ver n. 1. a. A strategic or tactical military or naval movement. b. A large-scale tactical exercise carried out under simulated conditions of war. Often used in the plural. 2. of a smaller unit. Agricultural Equipment - As expected, retail unit sales of agricultural equipment in the first quarter were down 14 percent as a result of declines in most regions of the world, reflecting the ongoing soft conditions in the global agricultural equipment market. Wholesale sales of agricultural equipment were down 30 percent from the prior year period as a result of the company's lower production schedules. In North America, retail sales were lower in every product category, with the largest declines coming in high-horsepower tractors and combines. In Latin America, sales were lower in every product category reflecting the ongoing economic uncertainties in that region. In Europe, decreases in agricultural equipment retail sales overall were partially offset by gains in high-horsepower tractors as a result of the introduction of the MX Magnum in this market. This well-received tractor tractor, in agriculture, vehicle used to pull such equipment as plows, cultivators, and mowers; to power stationary devices such as saws and winches; and to push snowplows and earth-moving implements. has set new industry standards for power and fuel efficiency. An embedded Inserted into. See embedded system. controller-area network enables the tractor to communicate with attached implements and automate To turn a set of manual steps into an operation that goes by itself. See automation. on-the-go input changes through a single connection. Financial Services Case Capital Corporation grew its managed portfolio in the first quarter to a record $7 billion, a 32 percent increase from the same prior year period. Case Capital announced net income of $20 million for the first quarter, up 5 percent from $19 million in the prior year period. Revenues increased 43 percent over the prior year to $109 million. This performance demonstrates the success of Case Capital's operating strategy to grow and diversify its business. (Also see Case Capital Corporation's first quarter press release.) Market Outlook The market outlook for Case's agricultural and construction equipment and financial services businesses is substantially unchanged from the company's outlook at the beginning of the year. As expected, demand for agricultural equipment continued to decline during the first quarter of 1999. This decrease is the result of low commodity prices, driven principally by three consecutive years of strong-to-record harvests in most major grain crops. Exports of farm commodities dropped substantially last year, adversely affecting large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. production agriculture farmers. Due to unfavorable economic conditions in Brazil, the agricultural equipment market in Latin America, primarily small tractors, is now projected to be down 10 to 15 percent in 1999. In addition, financing for equipment purchases in emerging markets is expected to remain extremely difficult. As a result of these factors, the company continues to expect that worldwide sales of agricultural equipment will be down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8 to 10 percent in 1999. The global outlook for the construction equipment market varies by region. In North America, demand should be stable due to a sustained level of housing starts and a continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment. The U.S. Highway Bill that will increase infrastructure spending supports this outlook. In Europe, the market is expected to decline moderately in 1999 as anticipated improvements in France and Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. will be offset by lower sales in the United Kingdom, Africa and the Middle East. In Asia Pacific, economic conditions remain weak, but there are indications that markets are stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. . Case is further affected by a still weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Naurudollar - the basic monetary unit in many countries; equal to 100 cents , impacting the overall economy and construction activity there. In Latin America, the outlook has dampened considerably given Brazil's currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. . In total, worldwide construction equipment sales in 1999 are expected to be flat to down slightly when compared to the prior year. The information included in this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and involves risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The company's outlook is predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. based on its interpretation of what it considers key economic assumptions. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other construction activity are sensitive to interest rates and government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. . Some of the other significant factors for the company include general economic and capital market conditions, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of its business, foreign currency movements, the company's and its customers' access to credit, political uncertainty and civil unrest Unrest is a sociological phenomenon, for instance:
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Annual Report for 1998, as filed and amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. with the Securities and Exchange Commission: Business - Employees, Business - Environmental Matters, Business - Significant International Operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , Business - Seasonality and Production Schedules, Business - Competition, Legal Proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations. Case Corporation is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment and offers a broad array of financial products and services. Headquartered in Racine, Wisconsin Racine is a city in Racine County, Wisconsin, United States, located beside Lake Michigan at the mouth of the Root River.[2] As of the 2006 census, the city had a total population of 79,592.[3] It is the county seat of Racine County. , Case had 1998 revenues of $6.1 billion and sells its products in 150 countries through a network of approximately 4,900 independent dealers.
Case Corporation
Revenues and Net Sales
March 31, 1999
(Millions)
Three Months Ended
------------------ %
1999 1998 Change
------- ------ -------
Revenues:
Net sales
Agricultural equipment $ 549 $ 783 -30%
Construction equipment 535 514 4%
------ ------
Total net sales 1,084 1,297 -16%
Financial services 109 76 43%
Other revenues 8 8 -
------ ------
Total revenues $1,201 $1,381 -13%
====== ======
Net sales:
North America $ 647 $ 770 -16%
Europe(a) 330 383 -14%
Asia Pacific 66 68 -3%
Latin America 41 76 -46%
------ ------
Total net sales $1,084 $1,297 -16%
====== ======
(a) Includes Africa and Middle East
CASE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
(Unaudited)
CONSOLIDATED
Three Months Ended
March 31,
----------------------
1999 1998
---- ----
Revenues
Net sales $ 1,084 $ 1,297
Interest income and other 117 84
------- -------
Total 1,201 1,381
Costs and Expenses
Cost of goods sold 932 1,019
Selling, general and administrative 174 146
Research, development and engineering 49 52
Interest expense 75 47
Other, net 30 15
------- -------
Total 1,260 1,279
Income (loss) before taxes (59) 102
Income tax provision (benefit) (11) 33
------- -------
(48) 69
Equity in income - Case Capital
------- -------
Net income (loss) $ (48) $ 69
======= =======
Preferred stock dividends 2 2
------- -------
Net income (loss) to common $ (50) $ 67
======= =======
CASE INDUSTRIAL
Three Months Ended
March 31,
--------------------
1999 1998
---- ----
Revenues
Net sales $ 1,084 $ 1,297
Interest income and other 10 8
------- -------
Total 1,094 1,305
Costs and Expenses
Cost of goods sold 932 1,019
Selling, general and administrative 157 137
Research, development and engineering 49 52
Interest expense 32 18
Other, net 14 7
------- -------
Total 1,184 1,233
Income (loss) before taxes (90) 72
Income tax provision (benefit) (22) 22
------- -------
(68) 50
Equity in income - Case Capital 20 19
------- -------
Net income (loss) $ (48) $ 69
======= =======
CASE CAPITAL
Three Months Ended
March 31,
--------------------
1999 1998
----- -----
Revenues
Net sales $ -- $ --
Interest income and other 109 76
----- -----
Total 109 76
Costs and Expenses
Cost of goods sold
Selling, general and administrative 17 9
Research, development and engineering
Interest expense 45 29
Other, net 16 8
----- -----
Total 78 46
Income (loss) before taxes 31 30
Income tax provision (benefit) 11 11
----- -----
Equity in income - Case Capital 20 19
----- -----
Net income (loss) $ 20 $ 19
===== =====
Earnings (loss) per Common Share (EPS):
Basic EPS $(0.68) $0.91
Diluted EPS $(0.68) $0.88
See Notes to Interim Financial Statements.
CASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
(Unaudited)
CONSOLIDATED
March 31,
--------------------
1999 1998
Assets ---- ----
Cash and cash equivalents $ 119 $ 152
Accounts, notes receivable
and other - net 4,536 3,897
Inventories 1,465 1,251
Property, plant and equipment - net 1,048 991
Equipment on operating leases - net 495 208
Investment in Case Capital
Goodwill and intangibles 346 313
Other assets 854 576
------ ------
Total $8,863 $7,388
====== ======
Liabilities and Equity
Current maturities of long-term debt $ 9 $ 8
Short-term debt 1,112 1,410
Accounts payable and other
accrued liabilities 1,501 1,517
Long-term debt 3,591 1,681
Other liabilities 591 445
------ ------
Total Liabilities 6,804 5,061
Equity 2,059 2,327
------ ------
Total $8,863 $7,388
====== ======
CASE INDUSTRIAL
March 31,
-----------------------
1999 1998
Assets ---- ----
Cash and cash equivalents $ 91 $ 125
Accounts, notes receivable
and other - net 1,793 1,964
Inventories 1,465 1,251
Property, plant and equipment - net 1,045 988
Equipment on operating leases - net
Investment in Case Capital 482 378
Goodwill and intangibles 346 313
Other assets 604 464
------ ------
Total $5,826 $5,483
====== ======
Liabilities and Equity
Current maturities of long-term debt $ 9 $ 8
Short-term debt 856 526
Accounts payable and other accrued liabilities 1,429 1,538
Long-term debt 981 667
Other liabilities 492 417
------ ------
Total Liabilities 3,767 3,156
Equity 2,059 2,327
------ ------
Total $5,826 $5,483
====== ======
CASE CAPITAL
March 31,
--------------------
1999 1998
---- ----
Assets
Cash and cash equivalents $ 28 $ 27
Accounts, notes receivable and
other - net 2,722 1,989
Inventories
Property, plant and equipment - net 3 3
Equipment on operating leases - net 495 208
Investment in Case Capital
Goodwill and intangibles
Other assets 276 126
------ ------
Total $3,524 $2,353
====== ======
Liabilities and Equity
Current maturities of
long-term debt $ -- $ --
Short-term debt 256 884
Accounts payable and other
accrued liabilities 77 49
Long-term debt 2,610 1,014
Other liabilities 99 28
------ ------
Total Liabilities 3,042 1,975
Equity 482 378
------ ------
Total $3,524 $2,353
====== ======
See Notes to Interim Financial Statements.
CASE CORPORATION
Notes to Interim Financial Statements
(1) The accompanying financial statements reflect the consolidated
results of Case Corporation and consolidated subsidiaries ("Case"
or "the Company"). The financial information captioned "Case
Industrial" in each of the financial statements includes Case's
agricultural and construction equipment operations, with the
Company's wholly owned retail credit subsidiary ("Case Capital")
reflected on the equity basis. The financial information
captioned "Case Capital" reflects the consolidation of Case's
retail credit subsidiaries. Case Capital provides financing for
retail installment sales contracts and leases, commercial lending
within the equipment industry, multiple lines of insurance
products and offers a private-label credit card. Certain
reclassifications have been made to conform the prior year's
financial statements to the 1999 presentation.
(2) On a consolidated basis, the Company's effective income tax rate
of 19% for the first quarter of 1999 was lower than the U.S.
statutory rate of 35% primarily due to losses in certain foreign
jurisdictions for which no immediate tax benefit was recognizable
and foreign losses taxed at different rates, partially offset by
state tax benefits, research and development tax credits, and the
recognition of tax benefits from the Company's foreign sales
corporation. For the first quarter of 1998, the Company's
consolidated effective tax rate of 32% was lower than the U.S.
statutory rate primarily due to reductions in the tax valuation
reserves in certain foreign jurisdictions, research and
development tax credits and the recognition of tax benefits from
the Company's foreign sales corporation, partially offset by
state income taxes.
(3) Case Corporation has three reportable operating segments:
agricultural equipment, construction equipment and financial
services. Case evaluates segment performance based on operating
earnings. The Company defines operating earnings as the income of
Case Industrial before interest, taxes, changes in accounting
principles and extraordinary items, including the income of Case
Capital on an equity basis. A reconciliation of Case Industrial's
net income to operating earnings is as follows (in millions):
Three
Months Ended
March 31,
---------
1999 1998
---- ----
Net income (loss) $ (48) $ 69
Income tax provision (benefit) (22) 22
Interest expense 32 18
-------- --------
Operating earnings (loss) $ (38) $109
======== ========
The following summarizes operating earnings (loss) by segment
(in millions):
Three
Months Ended
March 31,
--------
1999 1998
---- ----
Agricultural equipment $ (99) $ 41
Construction equipment 41 49
Financial services 20 19
-------- --------
Operating earnings (loss) $(38) $109
======== ========
(4) Earnings (loss) per common share ("EPS")
(in millions, except per share data):
Three
Months Ended
March 31,
------------------
1999 1998
---- ----
Basic EPS
Net income (loss) to common $ (50) $ 67
Weighted-average shares outstanding - Basic 72.9 73.9
Basic EPS $ (.68) $ .91
Diluted EPS
Net income (loss) $ (48) $ 69
Weighted-average shares outstanding - Diluted 76.8 78.5
Diluted EPS (a) $ (.68) $ .88
(a) Basic and Diluted EPS for the three months ended March 31,
1999 are the same as the securities are antidilutive.
( BW)(IL-CASE-CORPORATION)(CSE) Case Capital Corporation Reports Record Portfolio Business Editors The following is issued in conjunction with Case Corporation's 1999 first quarter results: - Managed portfolio grows to a record $7 billion - Net income up 5 percent to $20 million - Originations increase 16 percent for the quarter - Diversified financing business increases significantly LINCOLNSHIRE Lincolnshire (lĭng`kənshĭr), county (1991 pop. 573,900), 2,662 sq mi (6,895 sq km), E England, on the Humber estuary, the North Sea, and The Wash. The county seat is Lincoln. , Ill.--(BUSINESS WIRE)--April 19, 1999--Case Capital Corporation today announced net income of $20 million for the first quarter, up 5 percent from $19 million in the comparable period last year. Revenues increased 43 percent over the prior year period to $109 million. The improvement in net income is attributed to higher financing income from strong growth in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and leases. The increase was partially offset by higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and additional provisions for loan losses to support the company's growth initiatives. Case Capital's managed portfolio grew to a record $7 billion as of March 31, 1999, a 32 percent increase year-over-year. Financing originations increased 16 percent in the first quarter, as compared to the prior year period. These increases reflect the success of Case Capital's strategy to grow and diversify its business. "Our strong performance for the quarter once again demonstrates the strength of our business strategy," stated Ted R. French, chairman, Case Capital. "And, our ability to achieve sustained, profitable portfolio diversification Portfolio diversification Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country). and geographic growth demonstrates that we continue to execute that strategy successfully." Significant growth in Case Capital's diversified diversified (di·verˑ·s business enabled the company to increase its portfolio, more than offsetting the impact of weaker retail demand in the agricultural equipment market. Diversified originations, generated primarily through Soris Financial, were higher than anticipated for the quarter. Commercial marine financing, introduced in late 1998 through the Cummins-Case Credit alliance, also exceeded expectations during the period. New and improved product offerings introduced to equipment dealers and customers during the past two years also enabled Case Capital to grow its core business. These products include commercial loans, credit cards, leasing and insurance brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. . A new credit life insurance program, introduced in January January: see month. , was the first in a series of steps designed to enhance Case Credit Insurance Agency's total offerings and better meet the needs of equipment dealers and their customers. Geographic expansion also supported Case Capital's growth during the quarter. Case Credit Europe's portfolio tripled year-over-year, and Case Credit Australia's portfolio increased over 50 percent during the period. "We continue to experience success in growing both our core business and our diversified business," stated Andrew E. Graves, president, Case Capital. "As we pursue new opportunities, we continue to take significant steps to maintain our portfolio quality and ensure sustainable, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. earnings growth for Case Capital." Case Capital Corporation, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Case Corporation, provides broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased financial services for the global marketplace. Case Capital serves customers purchasing, leasing and insuring products through Case Credit Corporation, Soris Financial and Case Credit Insurance Agency. Established in 1957, Case Credit markets its products through Case Corporation's established dealer networks in North America, Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and Europe. Soris offers its products through diverse dealer networks located in North America. Based in Lincolnshire, Illinois Lincolnshire is an affluent village in Lake County, Illinois, United States. The population was 6,108 at the 2000 census. It is the headquarters of Hewitt Associates, Quill Corporation, and Takeda Pharmaceuticals North America, as well as Newman/Haas Racing, an auto racing team in , Case Capital manages a $7 billion portfolio of receivables and leases. CONTACT: Case Capital Corporation Sandra sandra (sänˑ·dr  ),adj J. Lasch, 414/636-6473 |
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