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ASSOCIATES CORPORATION OF NORTH AMERICA REPORTS RECORD EARNINGS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1993

    DALLAS, Oct. 27 /PRNewswire/ -- Associates Corporation of North America, part of the Financial Services Group of Ford Motor Company, (NYSE: F) achieved record earnings for the third quarter of 1993 and for the nine months ended September 30, 1993, Reece A. Overcash Jr., chairman and chief executive officer, announced today.
    Net earnings for the three-month period ended September 30 increased 14 percent to $134.4 million, compared with $117.8 million a year earlier.  Earnings before provision for income taxes increased 21 percent to $220.6 million for the period, compared with $182.4 million for the prior year.
    Net earnings for the nine months ended September 30 were $381.3 million, a 21 percent increase over the $315.1 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 $608.6 million, a 20 percent gain over the $505.1 million a year ago.
    Overcash said, "We continue to realize growth and profits in both the consumer and commercial finance operations. We have expanded our customer base through internal growth and key acquisitions.  Our 75th year will be our best ever."
    The company's consumer finance operation was led by receivables growth in both real estate-secured lending and personal loans.  The company also had significant growth in credit card receivables, including the previously reported acquisition of an approximately $222 million portfolio.
    The commercial finance operation continued to be led by market leadership positions in transportation financing and auto and truck leasing.  The acquisition of the assets of Mack Financial Corporation was completed during the quarter, representing net finance receivables of approximately $551 million in the United States and approximately $77 million (U.S.) in Canada.  Manufactured housing sales financing also reported solid gains.
    Total assets at September 30 were $27.2 billion, another record. Additionally, assets of operations managed by The Associates on behalf of Ford subsidiaries in the United States, Japan, the United Kingdom, Canada and Puerto Rico were $3.2 billion.  The results and assets of these managed operations are not included in those of The Associates.
    Total revenue for the third quarter increased 13 percent to $949.3 million, compared with $839.8 million for the same period last year.  Total revenue for the nine months increased 10 percent to $2.7 billion, compared with $2.5 billion in 1992.
    Gross finance receivables outstanding at September 30, 1993 were $28.6 billion, a 21 percent increase over the $23.7 billion of a year ago.
    Consumer finance gross receivables outstanding were $19.7 billion at September 30, a 21 percent increase over the $16.3 billion reported a year ago.  Consumer finance volume for the nine-month period was $9.8 billion.  Consumer finance receivables consist of home equity- secured receivables, personal loans, sales financing of manufactured housing, consumer durable goods and credit card receivables.
    Commercial finance gross receivables outstanding were $8.9 billion at September 30, compared with $7.4 billion a year ago, a 21 percent increase.  Commercial finance volume for the nine-month period was $7.4 billion.  Commercial finance receivables result from the sales financing and leasing of transportation, construction, communications and other industrial equipment.  The company is also a significant provider of automobile club, mortgage banking and employee relocation services, which are part of the commercial finance operation.
    Revenue from insurance premiums for the nine-month period was $177.0 million, a 13 percent increase over the $156.8 million reported last year.  The insurance operating group is principally engaged in underwriting credit life, health and physical damage insurance for customers of the finance operations.
    Associates Corporation of North America is the nation's second largest independent finance company as measured by total net finance receivables, providing consumer finance, commercial finance and leasing, and insurance.
    -0-             10/27/93
    CONTACT:  Fred Stern of The Associates, 214-541-4042
    (F) CO:  ASSOCIATES CORPORATION OF NORTH AMERICA IN:  FIN AUT SU:  ERN ST:  TX


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Date:Oct 27, 1993
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