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ASSOCIATES CORPORATION OF NORTH AMERICA REPORTS RECORD EARNINGS FOR SIX MONTHS ENDED JUNE 30, 1993

 DALLAS, July 28 /PRNewswire/ -- Associates Corporation of North America, part of the Financial Services Group of Ford Motor Company (NYSE: F), achieved record earnings for the second quarter of 1993 and for the six months ended June 30, 1993, Reece A. Overcash Jr., chairman and chief executive officer, announced today.
 Net earnings for the three-month period ended June 30 increased 19 percent to $125.4 million, compared with $105.5 million a year earlier. Earnings before provision for income taxes increased 20 percent to $197.7 million for the period, compared with $164.9 million for the prior year.
 Net earnings for the first six months of 1993 were $246.9 million, a 25-percent increase over the $197.3 million for the prior year. Net earnings in 1992 were restated to include a one-time cumulative charge of $10.0 million resulting from the adoption of two new accounting standards relating to income taxes and postretirement benefits. Earnings before provision for income taxes were $388.0 million, a 20-percent gain over the $322.7 million a year ago.
 "The first half of this, our 75th year, has been the best six-month period in our company's history," said Overcash. "We are generating strong internal loan growth in our core business lines and expanding into new markets as opportunities present themselves."
 The company continued to report growth in its residential real estate-secured and personal loan portfolios as well as other major lending portfolios, including truck and truck trailers and heavy construction equipment. The financing of manufactured housing also contributed significantly to the company's six-month receivables growth.
 Total assets at June 30, 1993, were $25.6 billion, a new high. Additionally, assets of operations managed by The Associates on behalf of Ford subsidiaries in the United States, United Kingdom, Japan, Puerto Rico and Canada were $3.1 billion. The results and assets of these managed operations are not included in those of The Associates.
 Total revenue for the second quarter increased 7 percent to $896.8 million, compared with $834.7 million for the same period last year. Total revenue for the six months increased 8 percent to $1.8 billion, compared with $1.6 billion in 1992. Gross finance receivables at June 30, 1993, were $27.0 billion, compared with $23.1 billion last year, a 17-percent increase.
 Consumer finance gross receivables outstanding were $18.9 billion at June 30, up 19 percent from the $15.8 billion reported last year. Consumer finance volume for the period was $6.2 billion. Consumer finance receivables consist of home equity-secured receivables, personal loans, sales financing of manufactured housing and consumer durable goods and credit card receivables.
 Commercial finance gross receivables were $8.1 billion at June 30, up 11 percent from the $7.3 billin reported a year ago. Commercial finance volume for the period was $4.4 billion. Commercial finance receivables result from the sales financing and leasing of transportation, construction, communications and other industrial equipment. Automobile club, employee relocation services and mortgage banking are also part of the commercial finance operation.
 Revenue from insurance premiums for the period was $115.7 million, a 10-percent increase over the $105.4 million reported last year. The insurance operating group is engaged principally in underwriting credit life, health and physical damage insurance for customers of the finance operations.
 The Associates provides consumer finance, commercial finance and leasing, and insurance, and is the second largest independent finance company in the United States as measured by total net finance receivables.
 -0- 7/28/93
 /CONTACT: F.H. Stern, Associates Corporation of North America, 214-541-4522/
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CO: Associates Corporation of North America; Ford Motor Company ST: Texas IN: FIN SU: ERN

SM -- DE009 -- 6652 07/28/93 09:22 EDT
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Date:Jul 28, 1993
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