Case first quarter performance driven by growth from emerging markets, acquisitions.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 17, 1997-- -- Net income up 21 percent to $64 million (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. $.83), including extraordinary charge last year -- 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 affected by production impact and launch expense of new 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. introduction -- Revenues up 5 percent to $1.2 billion, driven by significant growth in international markets and 1996 acquisitions -- 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. up 10 percent worldwide, substantial gains 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). and 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. -- New MX series tractors launched, horsepower horsepower, unit of power in the English system of units. It is equal to 33,000 foot-pounds per minute or 550 foot-pounds per second or approximately 746 watts. range and features make MX "world" tractor suited to all regions Case Corporation (NYSE NYSE See: New York Stock Exchange :CSE (Certified Systems Engineer) See Microsoft certification. ) today announced net income of $64 million for the first quarter of 1997, up 21 percent over $53 million in the comparable period of 1996 that included a $22 million extraordinary after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge for early debt retirement. Net income per share for the first quarter was $.83, up 19 percent from $.70 in the first quarter of 1996. Revenues in the first quarter of 1997 increased 5 percent to $1.23 billion, up from $1.17 billion in the first quarter of 1996. The improvement was led by substantial year-over-year gains in the company's Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of and Asia Pacific regions. 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. and Europe also reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increases for the quarter, with gains coming primarily from 1996 acquisitions. As the company cited previously, the movement of production of the new MX series Maxxum tractor from the Neuss Neuss (nois), city (1994 pop. 148,560), North Rhine–Westphalia, W Germany. It is a rail junction and canal port, near the left bank of the Rhine opposite Düsseldorf. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , plant to two other Case facilities resulted in lower production compared to the first quarter of 1996. However, the company continues to expect no adverse impact on full year production schedules. Operating earnings for the first quarter were $103 million, down from $126 million for the same period last year. One-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs associated with the launch and production start-up Start-up The earliest stage of a new business venture. of the MX series tractor, together with lower production in preparation for the closure of the Neuss plant, more than accounted for the year-over-year difference. "We are very pleased with our achievements in the first quarter. While meeting our performance expectations, we accomplished the challenging task of transferring production of our high volume, mid-horsepower tractor from the plant we are closing in Germany to facilities in the U.S. and England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. that will enable us to serve our customers more efficiently," 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. , chairman, president and chief executive officer. "Our growth was fueled by contributions from our 1996 acquisitions and ongoing increases in our Latin American and Asia Pacific regions. During the quarter, our string of new product introductions continued, and we completed two acquisitions, all of which will further add to our growth potential. These, together with planned restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions we are completing this year, will contribute to our goal of superior financial performance and continued shareholder value creation." Growth and Cost Reduction Actions Continue: New Product Launch, Acquisitions and Restructuring Actions Case completed a number of actions in the first quarter that are expected to continue the momentum of the company's growth and cost reduction initiatives. During the quarter, the company successfully shifted production of its high volume, mid-horsepower tractor line. This will facilitate the previously announced closure of the Neuss, Germany, plant, the single largest step in Case's 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. restructuring program. The closure will begin to benefit earnings in the second half of 1997. Following the launch of more than 20 new models of agricultural equipment in 1996, Case introduced a new mid-horsepower range of tractors, the MX series, in the first quarter of 1997. The MX tractors meet the needs of more farmers around the world than any other tractor line, with features and options that enable it to be used as both a row-crop and utility tractor. The new MX tractors have 10 percent more horsepower than the previous Maxxum model, are available with an integrated front loader A front loader can be a
adv. To an advanced or unusual degree; extremely. exceedingly Adverb very; extremely Adv. 1. strong as the tractors were viewed during one of the continent's largest agricultural trade shows. Case began shipping its Quadtrac four-wheel four-wheel adj. 1. Having or running on four wheels. 2. Of or relating to four-wheel drive. Adj. 1. four-wheel - of or relating to vehicles with four wheels; "a four-wheel drive" four-wheeled drive tractor in the first quarter. Introduced in the third quarter of 1996, customer demand has been exceptional for the Quadtrac, uniquely designed with four separate triangular-shaped tracks that provide superior ride and performance compared to other track-style tractors. Also in the first quarter, Case acquired Bor-Mor Inc., a manufacturer of directional In one direction. Contrast with omnidirectional. drills. Bor-Mor complements Case's existing trencher business and adds "trenchless Trenchless technology is a rapidly growing sector of the construction and civil engineering industries. It can be defined as: the set of techniques to develop, maintain, and terminate subsurface tunnels without the need for excavating continuous trenches. " technology that gives Case dealers a complete systems solution for underground construction. Demand for directional drills is growing in urban areas for infrastructure repair and is particularly well-suited for laying fiber optic cable Noun 1. fiber optic cable - a cable made of optical fibers that can transmit large amounts of information at the speed of light fibre optic cable transmission line, cable, line - a conductor for transmitting electrical or optical signals or electric power . More than half of Bor-Mor's sales are outside the U.S. Case also acquired the assets of Agri-Logic, a leading developer of software for agricultural applications. In addition to having one of the industry's best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best packages for yield mapping, Agri-Logic also makes software for crop planning. This acquisition gives Case greater software development capability, which will aid in the application of the company's Advanced Farming Systems in tractors and implements. Case will continue to pursue growth opportunities worldwide. The company looks to selectively add to its geographic markets and product lines through acquisitions in which Case can create value by leveraging products through its distribution network, adding advanced technology to its products, or applying its process reengineering Using information technology to improve performance and cut costs. Its main premise, as popularized by the book "Reengineering the Corporation" by Michael Hammer and James Champy, is to examine the goals of an organization and to redesign work and business processes from the ground up and cost-of-quality methods to improve performance. Equipment Sales Worldwide retail unit sales of Case equipment rose 10 percent over the first quarter of 1996. In North America, retail unit sales of Case major agricultural equipment were up 6 percent, led by substantial gains in four-wheel drive tractors and combines. Retail sales of Case IH Steiger four-wheel drive tractors were up 13 percent, more than double the industry increase. And retail sales of Case IH Axial-Flow combines continued the trend of the record-setting fourth quarter of 1996 with a year-over-year 21 percent increase in the first quarter of this year. In construction equipment, Case retail unit sales were up slightly from the first quarter of 1996, driven by an increase in loader/backhoes. Case realized its highest first quarter market share in loader/backhoes since introducing the L series models in late 1994. In Europe, retail unit sales of Case agricultural equipment were up 9 percent, led by significant increases in tractor sales and the strength of the Case and Steyr Steyr (shtī`ər), city (1991 pop. 39,337), Upper Austria prov., central Austria, on the Enns and Steyr rivers. It has been an ironworking center since the Middle Ages. lines. Tractors with less than 120 horsepower were up 7 percent, while tractors with more than 120 horsepower jumped 62 percent, reflecting the addition of the Steyr products and the combined Case-Steyr distribution system. Retail sales of Case construction equipment were up 44 percent, including sales from Fermec, which was acquired in the third quarter of 1996. Retail sales of the L series loader/backhoe were up 16 percent over last year. In the Asia Pacific region, retail unit sales of Case agricultural equipment were led by a 40 percent increase in sales of four-wheel drive tractors. Overall retail sales were slightly lower than last year's first quarter, which was extremely strong due to the end of drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. in 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. at that time. Retail sales of Case construction equipment were up 35 percent in the region, led by a 46 percent jump in retail sales of skid steers and, in the Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" , strong sales of loader/backhoes. In Latin America, retail unit sales of Case agricultural equipment rose 36 percent in the first quarter. The gain was driven by significant growth in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and 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. . Retail sales of Case construction equipment were even stronger, rising 53 percent in the first quarter with increases in virtually all product lines, particularly loader/backhoes and wheel loaders. Sales gains came in Brazil, Mexico, Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and the other Mercosur Mercosur or Mercosul, officially the Common Market of the South, Latin American trade organization established in 1991 to increase economic cooperation among the countries of E South America. markets. Market Outlook The markets for Case's agricultural and construction equipment continue to be bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by solid economic fundamentals. Worldwide demand for grains and other agricultural products remains exceptionally strong and is growing. Grain stock levels, meanwhile, were at the low range of normal operating levels at the end of 1996, and extreme weather conditions in some parts of North America are anticipated to affect winter wheat winter wheat n. Wheat planted in the autumn and harvested the following spring or early summer. harvests. These conditions are expected to keep commodity prices favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and are generally positive for agricultural equipment sales. In Europe, the pent-up pent-up adj. Not given expression; repressed: pent-up emotions. pent-up Adjective not released; repressed: demand for lower horsepower tractors has slowed. However, the company continues to believe that farm consolidation in Europe will drive greater sales of higher horsepower units. The construction equipment market is benefiting from historically strong housing starts in North America. In Europe, housing construction in the U.K. has been brisk Brisk as a proper name may refer to:
pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. housing market has been further delayed due to general economic conditions. And, in Latin America, economic conditions in Brazil and Mexico have improved and retail sales of agricultural and construction equipment are expected to be strong year-over-year. Consistent with 1996, Case anticipates that 1997 unit production and wholesale sales will be at or below retail demand as part of the company's continuing supply chain management initiative to further reduce field inventories. The information included in the Outlook section and elsewhere in this release represents 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 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 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 1996, as filed 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, with revenues of $5.4 billion in 1996, is 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. , and is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment. The company's products are sold through a network of approximately 4,900 independent dealers and distributors in more than 150 countries. Case Credit 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 the company, services a portfolio of $4.5 billion of agricultural and construction equipment financing and leasing contracts. The following is issued in conjunction with Case Corporation's 1997 first quarter results: CASE CREDIT CORPORATION PORTFOLIO ACQUISITIONS UP 27 PERCENT IN FIRST QUARTER Case Credit Corporation, the company's retail financing subsidiary, increased portfolio acquisitions by 27 percent in the first quarter, growing its portfolio to a record $4.5 billion by the end of the period. New products and increased Case Credit marketing and sales initiatives accounted for the growth. Case Credit's first quarter net income was $22 million, down from $26 million in the first quarter of 1996, due to lower margins on asset-backed securitizations in a rising interest rate environment together with reduced income from Case Corporation marketing programs. These were partially offset by higher earnings as a result of increased levels of on-balance-sheet 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 . Case Credit's on-balance-sheet receivables have increased $465 million over the prior year period, consistent with Case Credit's strategy to grow its on-balance-sheet portfolio. Case Credit's loss-to-liquidation ratio remained low at .13 percent for the first quarter, compared to .15 percent for the same period in 1996. This is a result of improved collection activities, higher resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. value of Case equipment, and a generally strong economy. During the first quarter Case Credit established a Cdn. $500 million commercial paper program to reduce the funding cost for its Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. portfolio. Case Credit also issued $830 million of asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. in the quarter, $328 million of which was prefunded. Case Credit Corporation, a wholly owned subsidiary of Case Corporation, has been serving the financing needs of Case customers since 1957. Today, the company provides financing to 165,000 customers purchasing and leasing agricultural and construction equipment. Case Credit products and services are available through a network of approximately 2,000 dealers in North America and Australia. Based in Racine, Wisconsin, Case Credit services a $4.5 billion portfolio of receivables and leases. -0-
CASE CORPORATION
NET SALES
MARCH 31, 1997
(Millions)
Three Months Ended
_______________________
%
1997 1996 Change
_______ _______ ______
Net sales:
Agricultural equipment $ 562 $ 515 9%
Construction equipment 398 394 1%
Parts 216 196 10%
_______ _______
Total net sales $ 1,176 $ 1,105 6%
_______ _______
_______ _______
Net sales:
North America $ 667 $ 652 2%
Europe (a) 373 359 4%
Asia / Pacific 86 63 37%
Latin America 50 31 61%
_______ _______
Total net sales $ 1,176 $ 1,105 6%
_______ _______
_______ _______
(a) Includes Africa, Middle East and Central Europe
CASE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
(Unaudited)
CONSOLIDATED
Three Months Ended
March 31,
___________________
1997 1996
_______ _______
Revenues
Net sales $ 1,176 $ 1,105
Interest income and other 56 66
_______ _______
Total 1,232 1,171
____________________________________________________________________
Costs and Expenses
Cost of goods sold 910 844
Selling, general
and administrative 134 119
Research, development
and engineering 46 45
Interest expense 39 40
Other, net 8 4
_______ _______
Total 1,137 1,052
____________________________________________________________________
Income before taxes and
extraordinary items 95 119
Income tax provision 31 44
____________________________________________________________________
64 75
Equity in income - Case Credit
____________________________________________________________________
Income before extraordinary items 64 75
Extraordinary items (net of taxes) (22)
_______ _______
Net income $ 64 $ 53
_______ _______
_______ _______
Preferred stock dividends 2 2
_______ _______
Net income to common $ 62 $ 51
_______ _______
_______ _______
____________________________________________________________________
Earnings per Common Share:
Income per common share before
extraordinary items $ 0.83 $ 1.00
Net income per common share 0.83 0.70
Fully diluted earnings per
common share $ 0.82 $ 0.69
____________________________________________________________________
CASE INDUSTRIAL
Three Months Ended
March 31,
___________________
1997 1996
_______ _______
Revenues
Net sales $ 1,176 $ 1,105
Interest income and other 10 16
_______ _______
Total 1,186 1,121
____________________________________________________________________
Costs and Expenses
Cost of goods sold 910 844
Selling, general
and administrative 145 128
Research, development
and engineering 46 45
Interest expense 18 23
Other, net 4 4
_______ _______
Total 1,123 1,044
____________________________________________________________________
Income before taxes and
extraordinary items 63 77
Income tax provision 21 28
____________________________________________________________________
42 49
Equity in income - Case Credit 22 26
____________________________________________________________________
Income before extraordinary items 64 75
Extraordinary items (net of taxes) (22)
_______ _______
Net income $ 64 $ 53
_______ _______
_______ _______
____________________________________________________________________
CASE CREDIT
Three Months Ended
March 31,
___________________
1997 1996
_______ _______
Revenues
Net sales $ - $ -
Interest income and other 66 66
_______ _______
Total 66 66
____________________________________________________________________
Costs and Expenses
Cost of goods sold
Selling, general
and administrative 8 7
Research, development
and engineering
Interest expense 22 17
Other, net 4
_______ _______
Total 34 24
____________________________________________________________________
Income before taxes and
extraordinary items 32 42
Income tax provision 10 16
____________________________________________________________________
22 26
Equity in income - Case Credit
____________________________________________________________________
Income before extraordinary items 22 26
Extraordinary items (net of taxes)
_______ _______
Net income $ 22 $ 26
_______ _______
_______ _______
____________________________________________________________________
See Notes to Interim Financial Statements.
CASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
(Unaudited)
CONSOLIDATED
March 31,
________________
1997 1996
____ ____
Assets
Cash and cash equivalents $ 104 $ 71
Retail accounts, notes receivable and other - net 1,658 1,541
Wholesale accounts and notes receivable - net 1,355 1,325
Inventories 1,189 1,066
Property, plant and equipment - net 971 938
Investment in Case Credit
Goodwill and intangibles 297 189
Other assets 598 493
_______ _______
Total $ 6,172 $ 5,623
_______ _______
_______ _______
____________________________________________________________________
Liabilities and Equity
Current maturities of long-term debt $ 8 $ 45
Short-term debt 1,113 775
Accounts payable and other accrued liabilities 1,467 1,426
Long-term debt 1,154 1,160
Other liabilities 407 525
_______ _______
Total Liabilities 4,149 3,931
Equity 2,023 1,692
_______ _______
Total $ 6,172 $ 5,623
_______ _______
_______ _______
____________________________________________________________________
CASE INDUSTRIAL
March 31,
________________
1997 1996
_______ _______
Assets
Cash and cash equivalents $ 69 $ 59
Retail accounts, notes receivable and other - net 204 511
Wholesale accounts and notes receivable - net 1,355 1,325
Inventories 1,189 1,066
Property, plant and equipment - net 968 938
Investment in Case Credit 281 201
Goodwill and intangibles 297 189
Other assets 468 477
_______ _______
Total $ 4,831 $ 4,766
_______ _______
_______ _______
____________________________________________________________________
Liabilities and Equity
Current maturities of long-term debt $ 8 $ 45
Short-term debt 244 237
Accounts payable and other accrued liabilities 1,450 1,385
Long-term debt 699 882
Other liabilities 407 525
_______ _______
Total Liabilities 2,808 3,074
Equity 2,023 1,692
_______ _______
Total $ 4,831 $ 4,766
_______ _______
_______ _______
____________________________________________________________________
CASE CREDIT
March 31,
_______________
1997 1996
_______ _______
Assets
Cash and cash equivalents $ 35 $ 12
Retail accounts, notes receivable and other - net 1,489 1,024
Wholesale accounts and notes receivable - net
Inventories
Property, plant and equipment - net 3
Investment in Case Credit
Goodwill and intangibles
Other assets 142 27
_______ _______
Total $ 1,669 $ 1,063
_______ _______
_______ _______
____________________________________________________________________
Liabilities and Equity
Current maturities of long-term debt $ - $ -
Short-term debt 869 538
Accounts payable and other accrued liabilities 64 46
Long-term debt 455 278
Other liabilities
_______ _______
Total Liabilities 1,388 862
Equity 281 201
_______ _______
Total $ 1,669 $ 1,063
_______ _______
_______ _______
____________________________________________________________________
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. The supplemental "Case Industrial" consolidating data in each of the financial statements includes Case Corporation's agricultural equipment, construction equipment, parts and wholesale (dealer) financing operations, with Case Credit reflected on the equity basis. The supplemental "Case Credit" consolidating data includes Case Corporation's retail credit operations. Transactions between "Case Industrial" and "Case Credit" have been eliminated to arrive at the "Consolidated" data. (2) During the first quarter of 1997, limited-purpose business trusts organized by Case Credit issued $830 million of asset-backed securities to outside investors, of which $180 million was issued pursuant to a private Canadian placement. Case Credit has sold $502 million of U.S. and Canadian retail notes to the trusts in connection with these issuances. The proceeds from the sale of retail notes were used to repay outstanding debt and to finance additional receivables. The remaining $328 million of retail notes will be sold to the trusts as receivables are generated. The Company anticipates that sufficient new receivables will be acquired in the second quarter to satisfy the prefunding requirement. In the first quarter of 1996, the Company issued $625 million of asset-backed securities to outside investors, of which $234 million was prefunded. (3) On January January: see month. 16, 1996, the Company sold $300 million aggregate principal amount of its 7 1/4% unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. and unsubordinated notes due 2016 pursuant to a shelf registration statement filed with the Securities and Exchange Commission in June June: see month. 1995. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering, together with cash and additional borrowings under the Company's credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , were used to exercise the Company's option to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. for cash all of the Company's 10 1/2% Senior Subordinated Notes and pay accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that . As a result of the repurchase, the Company recorded an extraordinary charge of $22 million after tax in the first quarter of 1996. (4) On a consolidated basis, the Company's first quarter effective tax rate of 33% was slightly lower than the U.S. statutory tax rate of 35% primarily due to research and development tax credits, recognition of tax benefits from the Company's foreign sales corporation Foreign Sales Corporation (FSC) A special type of corporation created by the Tax Reform Act of 1984 that is designed to provide a tax incentive for exporting U.S.-produced goods. and reductions in the tax valuation reserves in certain foreign jurisdictions, partially offset by state income taxes and foreign income taxed at different rates. In the first quarter of 1996, the effective tax rate of 37% was slightly higher than the U.S. statutory tax rate primarily due to state income taxes and foreign income taxed at different rates, partially offset by a reduction in the tax valuation reserve in certain foreign jurisdictions. (5) Case defines operating earnings as industrial earnings before interest, taxes, changes in accounting principles and extraordinary items, including the income of Case Credit on an equity basis. A reconciliation of the Company's industrial net income to operating earnings is as follows (in millions): -0-
Case Industrial
Three Months Ended March 31,
____________________________
1997 1996
____ ____
Income before extraordinary items $ 64 $ 75
Income tax provision 21 28
Interest expense 18 23
____ ____
Operating earnings $103 $126
____ ____
____ ____
(6) Earnings Per Common Share:
Three Months Ended March 31,
____________________________
1997 1996
____ ____
Primary
_______
Net earnings available to common (millions) $ 62 $ 51
Average common shares outstanding (millions) 75.1 73.3
Primary earnings per common share $ .83 $ .70
Fully Diluted
_____________
Net earnings available to common (millions) $ 64 $ 53
Average common shares outstanding (millions) 78.5 76.8
Fully diluted earnings per common share $ .82 $ .69
CONTACT: Case Corporation William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack B. Masterson Mas·ter·son , William Barclay Known as "Bat." 1853-1921. American frontier marshal and journalist. Famed for his exploits as an army scout, gambler, and law enforcer in towns such as Dodge City and Tombstone, he was later a sports writer for , 414/636-5793 |
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