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August 9, 2001 Headlines--- Comdisco Objection Announced Lindsey McLorg says, “ Goodbye.” 2001 ELA Survey of Industry Activity is here! PLM International Announces Second Quarter Results United Capital Request from Phil Duley Willis Lease Finance Reports 95% ILC Names New V. P Operations: Delphia Hamms Manufacturing weakness spreads across USA—USA Today Globalnet's Woes Spin Cautionary Spending Tale-New York Times ### denotes press release --------------------------------------------------------------------------------------------- Comdisco Objection Announced SunGard, Inc. announced that it filed an objection with the U.S. Bankruptcy Court to the bidding procedures proposed by Comdisco, Inc. and Hewlett-Packard Co., on the grounds that the proposed procedures were unfair to SunGard and other potential bidders. The objection further affirms SunGard's bid to purchase the Availability Solutions business of Comdisco for $775 million in cash (subject to customary conditions). --------------------------------------------------------------------------------------------- United Capital Request Kit, I've been trying to reach United Capital concerning a vendor check that were returned NSF. These checks took awhile to make there way back to me and unfortunately I'm afraid I've missed my window of opportunity to collect from United. Do you or any of your readers know how to get in touch with someone at United. The phone numbers we had either are disconnected, constantly busy, or just ring endlessly. Any assistance would be greatly appreciated. Phil Duley Quest Financial Corporation 3151 Airway Ave. Ste. H-3 Costa Mesa, CA 92626 tel. 800-728-8873 fax. 714-918-5125 www.questfinancial.com ( Leasing News gave Mr. Duley this information: United Capital is being serviced under private label by ILC 888-452-7845, but it did not help his situation. We understand from insiders Spectrum Leasing is being run by Steve Dallas with several or many ex-United Capital employees. We believe the portfolio is being service by ILC, and other parts have been sold. There has been no news of a bankruptcy filing, and if United Capital is still operating, it is a skeleton crew, or perhaps an answering device as Mr. Duley has not been able to reach anyone. editor ) --------------------------------------------------------------------------------------------- Lindsey McLorg says, “ Goodbye.” Dear Kit: Today will be my last day at Mellon US Leasing. I would appreciate your redirecting your newsletter to my home e-address (as indicated in the cc above) until I surface elsewhere. The absorption of MUSL into GE Capital process is at the halfway mark, with today being 60 days post closing date of the sale by Mellon. The turn out the lights day for the San Francisco operations is October 5, 2001. I have been most appreciative of my daily Menkit - dose and hope that you can continue indefinitely what I imagine is a mostly rewarding but perhaps sometimes thankless endeavor . You are performing a real service to the leasing industry for which I thank you. As I leave US Leasing behind and look forward to a bit of a sabbatical while I figure out what comes next, it is worthwhile to note in passing that if US Leasing had made it to 2002, this Granddaddy of the leasing industry would have hit its Golden anniversary next year. Instead it must remain forever a 49er, which in the final analysis isn't the worst thing that could happen to a venerable San Francisco based institution now laid to rest! Again, thank you for your continuing service and happy trails to you. Best regards, Lindsey McLorg ( I asked Lindsey if I could publish her e-mail and she said yes. Here is another good person "on the street" and available. editor )) --------------------------------------------------------------------------------------------- 2001 ELA Survey of Industry Activity is here! ****************************** Considered by the Equipment Leasing Association as the “Bible” of leasing and finance industry, the 2001 Survey of Industry Activity captures virtually every measurable characteristic of a leasing operation, from new business volume to portfolio performance to profitability ratios-- and much more. It is advised by ELA, to make smart business decisions regarding your leasing operation, “you need to access the Survey.” Go to the ELA Store on ELA's website http://www.elaonline.com/ELAstore/index.cfm?fuseaction=view_product&prod_id=32 to order your copy of the 2001 Survey of Industry Activity today! Cost: Member - $295 Non-Member - $495 In addition, respondents and purchasers of the Survey will gain FREE access to the Interactive Survey of Industry Activity (iSIA). The iSIA allows you to search from among various benchmarking criteria and immediately view custom results on-line. Another feature announced today in the Thursday ELA Newsletter: PAYNET, Inc. announces the official launch of its PAYNET service for the commercial lending industry, taking advantage of the much-touted "second wave" of the world's technological evolution in commercial credit information. A cooperative network of commercial finance companies representing more than $160 billion net assets are committed to PAYNET's online database illustrating that shared data coupled with the power of the Internet is the future of the commercial credit industry. In exchange for sharing their data, the members have access to PAYNET's exclusive information products and services. There are a number of alerts to members to help with writing letters and getting involved in legislation, both on the nationial and local level, such as: California Tax Credit Meeting Scheduled October 17 ****************************** An ELA meeting with California Senate Revenue & Taxation Committee Chairman Jack Scott (D) has been scheduled in his Pasadena district office for 9:30 AM on Wednesday, October 17. ELA members are encouraged to take part in urging passage of ELA backed legislation before his committee that would give lessees an option to pass the 6% Manufacturers Investment Credit (MIC) to the equipment lessor. Please respond by email to dbrown@elamail.com if you and/or a colleague can participate in this important meeting. Include your name and company. ( Note: this is for ELA members only. I print this to show readers how active this association is for the entire industry, not just its members. editor ) --------------------------------------------------------------------------------------------- ( “The Company's commercial and industrial equipment and trailer leasing subsidiaries were sold in 2000 and are accounted for as discontinued operations and prior periods have been restated” thus its turn to profitability ) ### ##################### ######################## ############## PLM International Announces Second Quarter Results
SAN FRANCISCO, / -- San Francisco-based PLM International, Inc. (AMEX: PLM) today reported the results of its operations for the quarter and six months ended June 30, 2001. For the three months ended June 30, 2001, consolidated revenues from continuing operations were $2.2 million compared to $2.1 million for the same period in 2000. Operating income rose to $0.3 million, compared to $13,000 in the second quarter of 2000. Net income from continuing operations totaled $0.3 million for the second quarter of 2001 versus a loss of $17,000 for the same period in 2000. The Company's commercial and industrial equipment and trailer leasing subsidiaries were sold in 2000 and are accounted for as discontinued operations and prior periods have been restated. For the second quarter of 2000, discontinued operations produced net income of $0.6 million. Diluted and basic income per share from discontinued operations both totaled $0.08 for the second quarter of 2000. As a result of the foregoing, diluted and basic earnings per share both totaled $0.03 for the second quarter of 2001, compared to $0.07 for the second quarter of 2000. Consolidated revenues from continuing operations, during the first six months of 2001, totaled $5.3 million compared to $4.6 million in the same period of 2000. Operating income was $0.9 million compared to $0.5 million in the same period of 2000. Net income from continuing operations totaled $0.6 million versus $0.1 million for the first six months of 2000. For the first six months of 2000, discontinued operations resulted in net income of $0.5 million. Diluted and basic income per share from discontinued operations both totaled $0.06 for the first six months of 2000. As a result of the foregoing, diluted and basic earnings per share both totaled $0.08 in the first six months of 2001 and 2000. PLM International is a management company providing services to transportation, industrial, and commercial companies. The Company manages a diversified portfolio of over $500 million (based on original equipment cost) of transportation and related equipment for approximately 60,000 third-party investors. ### ####################### ###################### ################ Willis Lease Finance Reports 95% Increase in Net Income From Continuing Operations; Lease Revenue Up 27% in the Second Quarter
SAUSALITO, Calif.-- --Willis Lease Finance Corporation (Nasdaq:WLFC) and its affiliates today reported second quarter net earnings from continuing operations that increased 95% as lease revenue grew 27% over the prior year period. These results reflect the substantial growth of the lease portfolio over the last three quarters, the continued strong worldwide demand for the company's services and the benefit of lower interest rates. Second quarter net earnings from continuing operations were $3.0 million or $0.33 per diluted share on total revenue of $19.2 million. In the second quarter a year ago, net earnings from continuing operations were $1.5 million, or $0.21 per diluted share, on total revenue of $15.2 million. Including net results from discontinued operations, WLFC reported net earnings of $2.4 million, or $0.27 per diluted share, compared to net earnings of $1.9 million, or $0.25 per diluted share, in last year's second quarter. For the first half of 2001, net earnings from continuing operations increased 79% to $5.5 million, or $0.61 per diluted share, on revenues of $36.3 million, compared to $3.1 million, or $0.41 per diluted share, on revenues of $29.1 million in the same period last year. Including discontinued operations, net income totaled $4.7 million, or $0.53 per diluted share, in the first six months of 2001 compared to $3.5 million, or $0.47 per diluted share, in the like period of 2000. Leasing Activity Lease revenue grew 27% to $15.6 million in the second quarter and increased 25% to $30.1 million in the first six months of 2001 compared to the first six months of 2000. WLFC purchased $43 million of engines for its lease portfolio in the second quarter, $85 million in the first half of 2001 and $174 million in the past three quarters. In contrast, in the first six months of 2000, the company added $46 million to its lease portfolio. The lease portfolio at June 30, 2001, had a net book value of $473.3 million, compared to $356.9 million at June 30, 2000. "Over the past year the net book value of the lease portfolio has grown by 33% and it continues to perform very well," said Charles F. Willis, President and CEO. "The growth has been fueled by continued strong demand for leased spare engines, despite or perhaps because of the downturn in the global airline business. We closely monitor the demand for our engines and the payment experience of our lessees. Our off-rent and past-due receivable positions remain at normal levels. Based upon what I see happening, I'm still reasonably upbeat about our business prospects for the remainder of the year." Finance Activity Since the beginning of this year, WLFC has increased its revolving debt facilities from $275 million to $315 million, an increase of $40 million. "Continued expansion of our credit facilities is a priority for us. With the contraction in credit availability many companies are experiencing this year, we are pleased to have earned such a strong level of support from the global banking community," said Willis. In November of 2000, WLFC entered into an alliance with Swissair Group. As part of the alliance, Swissair Group subsidiaries purchased a 15% ownership interest in WLFC and acquired WLFC's interests in its spare parts and repair businesses. Consequently, results from the spare parts and repair businesses, are now reported separately as "discontinued operations" and prior-period results have been restated. Results from Continuing Operations Second quarter revenue from continuing operations was $19.2 million, up 27% from $15.2 million in the second quarter of 2000. Year-to-date, revenues increased 25% to $36.3 million from $29.1 million in the first six months a year ago. Lease revenue represented 81% of total revenue in both the second quarter of this year and last year, and 83% in the first half of both years. Gains on the sale of leased equipment accounted for the remainder. In the second quarter, lease revenue increased 27% to $15.6 million, compared to $12.3 million in the second quarter last year. The increase reflects the 33% growth in the lease portfolio to $473.3 million at June 30, 2001. Revenue from gains on the sale of leased equipment was $3.6 million from the sale of two engines, compared to $2.9 million in last year's second quarter. Second quarter general and administrative expenses from continuing operations increased 6% to $3.7 million compared to $3.5 million in the second quarter of 2000. For the first half, G&A expenses increased $721,000 or 12% to $6.9 million, with more than half the increase attributable to various one-time expenses. G&A expenses decreased to 24% of lease revenue this quarter compared to 28% of lease revenue in the same quarter last year. Second quarter net interest and finance costs increased 2% to $6.3 million compared to $6.2 million in the like quarter a year ago. Year-to-date, net interest and finance costs increased 5% to $12.4 million compared to $11.9 million for the same period last year. The higher interest and finance costs reflect increased borrowing to finance expansion of the lease portfolio which was largely offset by lower interest rates. "Average debt outstanding during the second quarter of 2001 was 15% higher than the comparable quarter of 2000, yet our interest expense was only 3% higher. Our effective average interest rate is significantly below year-ago levels, and we will benefit further if interest rates continue to drop," said Nicholas J. Novasic, Chief Financial Officer. Second quarter pre-tax earnings from continuing operations nearly doubled to $4.9 million including $3.6 million in gains on the sale of leased equipment, compared to $2.5 million including $2.9 million in gains on sale in the second quarter a year ago. Pre-tax earnings in the first half of 2001 increased 80% to $9.0 million, including $6.2 million in gains on sale compared to $5.0 million, including $4.9 million in gains on sale, in the first half a year ago. "As the lease portfolio has grown, the profit contribution solely from leasing operations has increased sharply," said Donald A. Nunemaker, Chief Operating Officer. WLFC accrued taxes at a combined rate of 39% of pre-tax income from continuing operations in the second quarter of both 2001 and 2000. Net earnings from continuing operations increased 95% to $3.0 million, or $0.33 per diluted share, for the second quarter of 2001, compared to $1.5 million, or $0.21 per diluted share, in the second quarter of 2000. Year-to-date net earnings from continuing operations increased 79% to $5.5 million, or $0.61 per diluted share, compared to $3.1 million, or $0.41 per diluted share, in the first six months of 2000. Discontinued Operations During the second quarter, WLFC sold 6 of the 10 Stage II engines from discontinued operations for a loss and wrote down the value of 2 of the remaining 4 engines due to a decline in the market value of the engines and their residual components. The loss on the sale plus the writedown comprised the majority of the loss of $606,000 or $0.06 per diluted share in the quarter. The year-to-date loss from discontinued operations totaled $785,000 or $0.08 per diluted share compared to profits of $474,000 or $0.06 per diluted share for the same period a year ago. The net book value of the remaining 4 engines in discontinued operations is approximately $1.3 million. Of these engines, two are currently on lease and three are subject to an agreement whereby the engines may be sold to a subsidiary of the Swissair Group at WLFC's option at combined prices equal to $800,000. Solid Balance Sheet At June 30, 2001, WLFC had 111 commercial jet engines, 4 aircraft parts packages and 6 aircraft in its lease portfolio from continuing operations with a net book value of $473.3 million. The lease portfolio increased 33% in net book value from $356.9 million at June 30, 2000, when it consisted of 92 commercial jet engines, 4 aircraft parts packages and 6 aircraft. The company had $34.2 million of restricted and unrestricted cash and equivalents at June 30, 2001, compared to $25.4 million at December 31, 2000 and $25.9 million at June 30, 2000. The company's funded debt to equity ratio was 3.5 to 1 at June 30, 2001, compared to 3.2 to 1 at December 31, 2000 and 4.1 to 1 at June 30, 2000. Assets totaled $520.4 million at June 30, 2001, $455.9 million at December 31, 2000 and $426.7 million a year ago. Stockholders' equity was $99.6 million at June 30, 2001, up 36% from year ago levels. Stockholders' equity equates to a book value of $11.19 per share on a diluted basis. About Willis Lease Finance Willis Lease Finance Corporation leases spare commercial aircraft engines, rotable parts and aircraft to commercial airlines, aircraft engine manufacturers and overhaul/repair facilities. These leasing activities are integrated with the purchase and resale of used and refurbished commercial aircraft engines. ### ###################### ################### ################## --------------------------------------------------------------------------------------------- Globalnet's Woes Spin Cautionary Spending Tale By SUZANNE KAPNER, NEW YORK TIMES
LONDON, SAN MATEO, CALIF.. — Dismissing employees and selling subsidiaries as it runs out of money, Globalnet Financial.com looks like another Internet venture going bust in a hurry. But instead of quietly closing shop, the company is the center of a takeover battle for stakes it owns in a few promising businesses, including a broker of shares in initial public offerings and an online seller of personal pensions, life insurance and other financial services. The tussle is a cautionary tale of the consequences of freewheeling spending sanctioned by the Internet boom. At issue is whether Globalnet, which is based in Santa Monica, Calif., but does most of its business in Britain, suffered from mistakes or malfeasance. Did the executives make some bad investments, spending $120 million on deals that generated little return, or did they breach their fiduciary responsibility to shareholders through a series of insider transactions? Arguing the latter, a group of angry shareholders are trying to oust management by backing a takeover bid by AISoftware, a software company based in Italy. AISoftware today made an unsolicited offer of $13.7 million in stock for Globalnet. Globalnet managers, who deny any wrongdoing and say they have consistently acted in the best interest of the company, said they supported an earlier $9 million cash takeover offer from NewMedia Spark, a British company that invests in start- ups. The companies have shared some directors, have some joint investments and have offices in the same building in London. Ron Goldie, Globalnet's chief operating officer, said today that the board backed NewMedia's bid as the only tangible offer on the table. Michael Whitaker, NewMedia's chief executive and until recently a Globalnet board member, said the close relationship of the two companies could benefit Globalnet's shareholders. "Because NewMedia Spark has a number of investments in common with Globalnet, we are better placed than anyone else to realize value from those assets," he said. Investors must decide by Aug. 22 whether to sell their shares to NewMedia. As the debate intensifies, dissident shareholders are questioning some recent deals, like one in which Globalnet sold UK-Invest, its flagship financial Web site, to Advanced Financial (news/quote) Network for £800,000, or $1.1 million, in stock. As part of the deal, Globalnet agreed to invest £700,000 in Advanced Financial, in which NewMedia Spark also owns some shares. One of the dissident shareholders, Peter Fuhrman of New York, says that Globalnet is spending its precious cash to prop up NewMedia's portfolio. Mr. Goldie defended the agreement with Advanced Financial by saying that the only way Globalnet can sell assets in such a competitive market is to contribute its own money to the deal. The takeover debate comes amid a simmering battle over earlier management decisions made after the Internet bubble burst last year and while Globalnet's share value plunged more than 90 percent. Dissident shareholders, for example, have challenged Globalnet's decision to pay $1.9 million in severance to three top executives, even though its remaining cash reserve of $3 million is not enough to keep operations afloat or to cover liquidation costs. They also wonder why executives adopted a "poison pill" — a decision to issue new shares to dilute the stake of an unwanted suitor — if they are truly interested in selling the company to the highest bidder. Roger Alford, a senior research associate in the financial markets group of the London School of Economics, said poison pills protected management at the expense of shareholders. "It gives them a trump card," he said, by allowing management to negotiate not necessarily with the highest bidder, but with one who promises to "safeguard their jobs or pay severance packages." Mr. Goldie said the company was legally obligated to pay severance to him and two other executives when they were dismissed last week. None of the executives was expected to remain with the company under its new owner. If a buyer is not found, he said, they will be dismissed regardless because Globalnet will have ceased operating. He said the poison pill was designed to ensure that potential suitors negotiate with Globalnet's board. Globalnet started as a brokerage firm in 1987, under the name Galt Financial. A little over a decade later, it began providing financial services on the Internet, and by 1999 had changed its name to Globalnet Financial.com, under the direction of Stanley Hollander, then chief executive. Globalnet raced to build Web sites that delivered financial news, operated chat rooms and allowed subscribers to buy and sell stocks under the names UK-Invest and America- Invest, among others. It also invested in a variety of unrelated companies, including $1.1 million in NewMedia Spark. Mr. Whitaker, NewMedia's chief executive, joined the Globalnet board in November 1999, though he resigned before starting his bid. The two companies have offices in the same building off Regent Street in London. Globalnet, whose shares already traded on Nasdaq, raised $78 million by selling more shares on the Alternative Investment Market in London at the end of 1999. Some of the shares came from executives and investors in the company, who pocketed $16.3 million. The rest of the money was used to expand the business. Critics like Mr. Fuhrman complain that the money was wasted on a series of imprudent investments, including leasing office space the company never occupied and buying a brokerage firm that closed a year later. Mr. Hollander, who resigned as chief executive last September but is still a board member, said the deals "appeared to be a sensible strategic investment in the context of financial markets then existing." While 2000 started well for Globalnet, by the end of the year the company would lose $74.4 million on revenue of $7.3 million. Among the reasons for the loss: Globalnet leased space in Manhattan for an Internet foreign exchange operation that never happened. The space remains unoccupied, and Globalnet is negotiating to get out of $1.7 million in lease obligations, company documents show. Globalnet also agreed to buy Dalton Kent, a Manhattan brokerage firm, for $20 million in stock just before financial markets tumbled; what had been a profitable business began hemorrhaging $460,000 a month. Globalnet closed the operation less than a year later, recovering almost nothing from the investment, but not before it paid the former Dalton Kent partners a further $3.5 million in cash plus 1.1 million more Globalnet shares to compensate for a steep decline in its own stock price. Compounding its problems, Globalnet had expanded Dalton Kent's operations to Florida in the months after the acquisition, signing a $3.2 million lease for office space. Now a Globalnet vice president and director, Alan Jacobs, is negotiating to buy the Florida assets from Globalnet for an undisclosed price. Mr. Fuhrman said he would prefer to see those assets sold to people unrelated to the company. Mr. Goldie said extensive attempts to sublet the office space had proved fruitless in a market with collapsing real estate prices. He said Mr. Jacobs's offer was the only serious one. --------------------------------------------------------------------------------------------- ( Are the newspapers trying to talk us into a recession? editor ) USA TODAY Manufacturing weakness spreads across USA The nation's economy remained stagnant in June and July. ''Slow growth or lateral movement'' in business activity accompanied signs that manufacturing weakness was spreading. Increasingly wary consumers cut back on shopping and vacation travel. The findings come from the Federal Reserve's latest ''beige book,'' a survey by the Fed's 12 regional banks known for the color of its cover. The downbeat report enhances the odds that Fed policymakers will make their seventh cut in interest rates this year when they next meet, on Aug. 21. There were a few bright spots: The residential housing market remained strong, the weakening job market took pressure off wages, and falling energy prices helped keep inflation under control. USA TODAY's George Hager and Stephanie Armour examined the report. First District: Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, most of Connecticut. The economy here continued to slow. Retailers and manufacturers reported tough times and little hope of a rebound before next year. Retail sales were worse than expected -- flat or down compared with a year ago, except for sellers of building materials and hardware. Most manufacturers say orders are down from a year ago. One business that sells parts and supplies to manufacturers reports the worst conditions in 30 years. Residential real estate remained robust, though there were signs that sales were starting to fall. Insurance companies were downbeat about the future; one company said it is ''more uneasy'' because it had expected a recovery by now. Second District: New York, northern New Jersey, Fairfield County, Conn. Except for the home sales market, which remains strong, the economy here was ''sluggish.'' General merchandise retailers report lower sales than a year ago and commercial real estate is noticeably slowing. New York City was especially hard hit: Office vacancy rates are rising and rent falling. Manhattan hotel occupancy rates fell to a 6-year low of 80% in the second quarter, down from 89% a year ago. Room rates showed their sharpest decline since 1991. Shopping has weakened enough that most major retail chains are scaling back orders for the back-to-school and Christmas seasons. Banks report that loan demand has hit a plateau and delinquency rates have ''increased noticeably'' for consumer loans and ''moderately'' for non-residential mortgages. There was a moderate decline in delinquencies on home mortgages, however. Third District: Delaware, southern New Jersey, eastern Pennsylvania. Economic activity showed little or no improvement in July. Manufacturers reported continued declines, and general merchandise retailers found their sales falling below year-ago levels. Automobile sales edged up in July from June, but imports outsold domestic models. Manufacturers reported falling orders, particularly for transportation equipment, metal products and wood items. A majority of firms said their inventories were still too high. Nonetheless, factories expect business to improve in the next 6 months. Retailers say shoppers have curbed impulse buying, and sales are weak enough that stores have limited their stocking of fall merchandise. Tourist and recreational business is down from a year ago, and business travel is off sharply. Fourth District: Ohio, eastern Kentucky, western Pennsylvania, northern West Virginia. The economy remained stuck in neutral. Manufacturing weakness began to spread to other industries, such as construction and shipping. Steel orders were weak and inventories high; slowdowns in construction and appliance manufacturing were expected to make things even worse. Steel prices are off at least 25% from a year ago, and efforts to raise prices 5% a ton failed. Manufacturers are not optimistic about a turnaround, so capital spending remains low. The regional labor market has loosened, and demand for temporary workers was off as much as 15% since May and June. Retailers are worried about below-par back-to-school sales. Aggressive incentives kept auto sales up, but business appears to have peaked in June. As elsewhere, the residential housing market was a surprising bright spot. Banks reported no significant change in loan delinquencies. Fifth District: Maryland, Virginia, North Carolina, South Carolina, southern West Virginia, District of Columbia. Moderate growth in non-manufacturing business helped offset continuing declines in factory activity and sharp drops in retail sales. Many service businesses -- financial services and accounting, for example -- reported moderately higher revenue, though most said they were also carefully watching costs and employee head counts. Retailers reported ''markedly lower revenues,'' as shoppers stayed away and big-ticket sales plummeted. Manufacturers continued to weather tough times, with production dropping, particularly in textiles, lumber, furniture, paper and electronics. Companies were fighting a strong dollar and tough foreign competition. A North Carolina textile manufacturer said recent sales were the lowest in memory and there was little chance of any pickup anytime soon. Commercial real estate brokers reported weakening leasing and construction. Northern Virginia and Raleigh, N.C., reported a tenants' market for office space because of the high-tech shakeout in those areas. Sixth District: Alabama, Florida, Georgia, eastern Tennessee, southern Louisiana, southern Mississippi. The economy remained sluggish here. Retail sales weakened in June and posted only a slight improvement in July. Manufacturers continued to have trouble. Companies are holding back on capital investments because of the slump. The textile and apparel sectors have been hit with mill closings and reduced workweeks, while the paper industry has continued to weaken. Shipyards reported new commercial and government contracts, but some pleasure-boat makers have cut output because of slumping demand. In the broad economy, companies are handling the slowdown by cutting hours and shedding temporary workers; layoffs are the exception rather than the rule outside the factory sector. Wage pressures have continued to weaken. Home sales remained solid, particularly in South Florida. The commercial real estate market continued to weaken, however. Seventh District: Iowa, northern Indiana, northern Illinois, southern Michigan, southern Wisconsin. The economy continued at its sluggish pace, although there were generally no reports of price hikes. Consumer spending was down, especially for more costly goods and services. Some stores were canceling orders or asking shippers to warehouse merchandise rather than taking delivery. The increase in commercial real estate vacancies has some landlords offering free months or upgraded amenities. Bank lending activity was mixed, with business loans slowing but household lending maintaining its pace. Demand for workers decreased in June and July. There was a drop in the need for financial, real estate and legal services because of a drop in business dealmaking. Some companies were making plans to cancel or cut back on fall recruiting at college campuses. The slack labor market, however, meant a decrease in wage pressures. Eighth District: Arkansas, southern Illinois, southern Indiana, western Kentucky, northern Mississippi, eastern Missouri, western Tennessee. Slow economic growth hit numerous industries. Manufacturing decreased further and retail sales were virtually flat compared with last year. There have been some signs, however, that sales activity picked up since the end of the summer. Managers in furniture, chemical and auto-parts industries don't expect a pickup until the first quarter of 2002. A few trucking firms noted that there's been an uptick in activity because of declining gas prices. And some food and paper plants reported moderate growth and expansion. Residential real estate sales and prices remained strong. Homes in the $150,000 to $250,000 range have become fast sellers. Realtors described it as a sellers' market, which they expect to see well into the fall. June monthly building permit levels were down from May, but more than half of the metro areas' permit levels in June were up from a year ago. Consumer loans were weak, and banks have tightened credit standards for business loans. Ninth District: Minnesota, Montana, North Dakota, South Dakota, upper Michigan, northern Wisconsin. Subdued economic activity was marked by layoffs, a decrease in construction activity from last year and retail sales that were either flat or somewhat higher. But there were also bright spots: Home-building activity was higher compared with last year. For example, home sales in Fargo, N.D., were up 6% for the first half of 2001 compared with a year earlier. Consumer spending was up slightly. One Minneapolis mall noted that sales were up 4% for the first half of 2001 compared with the first half of last year. The energy sector also expanded: Oil and natural gas exploration was above last-quarter levels. But overall, manufacturing was down. Tourism also decreased: Mount Rushmore had a 3.5% decrease in visitors. Labor markets were tight, but more job cuts are expected. A major financial services firm plans to cut as many as 1,000 jobs over the next 15 months. Overall wage increases were moderate, and price increases remain modest. Tenth District: Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Missouri, northern New Mexico. The economy continued to weaken. Wage pressures were scant and prices for the most part held steady. Retail sales were flat in July, and consumers became more cost conscious. Motor vehicle sales did increase in July, but the uptick pushed auto sales only up to around the same levels as a year ago. Manufacturing activity declined, with producers of high-tech equipment taking the hardest hit. Real estate and construction activity dropped, and builders braced for a further decline in activity in coming months. While mortgage demand was flat in July, it was still above the levels of a year ago in many areas in large part because of refinancing activity. Vacancy rates increased in most cities, reaching record levels in some areas hit hard by dot-com failures. Eleventh District: Texas, northern Louisiana, southern New Mexico. Economic activity weakened. Construction and real estate sales declined, and hot weather hurt crop and livestock conditions. Prices were declining for energy, including oil and gas. Layoffs have hit several industries, and temporary employment firms saw more skilled workers seeking employment. Temp firms, however, noted that they received fewer orders from all types of companies. While wage pressures have abated, high health insurance costs were a worry for a number of employers. Manufacturing weakened in June and July. Those in the high-tech sector noted that orders are less negative and may be flattening. Twelfth District: Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, Washington. The economy continued to slow. Price pressures waned, and prices fell on airline fares, advertising fees and rental property. Sluggish economic growth also led to an easing of wage pressures. High electricity costs continued in June to late July. Some companies added backup power systems or changed production schedules. Overall retail sales were weak, discounts were larger than normal and sales were lower than forecast. Job cutbacks continued in high-tech and advertising; new orders for commercial aircraft were weak because of dwindling passenger traffic this year. ########### ################################# ############### ILC Names New V. P Operations: Delphia Hamms ILC Names New Vice President of Operations; Delphia Hamms will be responsible for maximizing efficiencies between business units Provident Bank and its subsidiary Information Leasing Corporation (ILC) announced that Delphia Hamms has been promoted to Vice President of Operations. With $1.3 billion in assets under management, ILC provides small to medium sized businesses with a variety of flexible financing solutions for acquiring major purchases including capital equipment and other high tech resources. In this new role, Ms. Hamms will be responsible for maximizing the synergies and productivity across ILC's Strategic Business Units, including Vendor, Direct, Third Party Servicing, Wholesale, Specialty Finance and Brokerage. Working with the Business Unit Directors, she will develop and execute strategies for implementing new systems, increasing productivity and efficiency and coordinating best practices throughout the units. "ILC is fortunate that Delphia is able to take on this important role," said Vince Rinaldi, ILC President and CEO. "Delphia has consistently produced excellent results in previous projects she has managed as well as in the various leadership roles she has held within the company. She will make an immediate impact on our back office processes." Ms. Hamms joined ILC in 1988. She has served in numerous leadership positions within ILC and most recently served as Vice President, Business Unit Director of ILC's Brokerage unit. About Information Leasing Corporation & The Provident Bank Information Leasing Corporation, a small to mid-ticket equipment leasing company, is a wholly-owned subsidiary of The Provident Bank. The Provident Bank is the main subsidiary of Provident Financial Group, Inc. (Nasdaq: PFGI), a Cincinnati-based company with $15.1 billion in on-balance sheet assets and $20.1 billion in managed assets. The Provident Bank provides full-service retail and commercial banking operations regionally and nationally. Additional company information is available at www.ilcinc.com and www.provident-bank.com . Sites of Reference: http://www.ilcinc.com ( courtesy of ELAonline ) ### ######################## ####################| www.leasingnews.org
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