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December 20, 2001 Stock Guys
Hit Too!! Thursday---Odds and Ends ## denotes press release -------------------------------------------------------------------------------------------------- Stock Guys Hit Too. Morgan Stanley Dean Witter & Co., Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., and Bear Stearns Cos. this week will report fiscal fourth- quarter profits dropped by up to 50 percent, capping the industry's biggest annual decline in earnings in seven years. The stock market's slide and a drought in mergers, stock sales, and trading by individual investors will push down industry profits to $11.2 billion, according to the Securities Industry Association, the lowest since 1994. (Bloomberg) ___________________________________________________________________________ GE Again, Last Week Double Digit Growth Prediction, Yesterday Not so, and today: GE to cut
3,000 jobs, sell units NEW YORK - General Electric Co. is cutting 3,000 jobs at GE Capital, the source of about 40 percent of the company's profit, and will exit some financing businesses to reduce expenses and keep earnings rising. GE Capital is consolidating administration at some of its 24 businesses, such as European equipment management financing. It has stopped selling mutual funds and other lower- margin products directly to consumers. The job cuts, which equal about 3.3 percent of GE Capital's work force last year, and exiting of product lines is expected to save $400 million next year. Jeff Immelt, who succeeded Jack Welch as chief executive in September, reassured investors that he can keep profit rising during the recession. At an analyst meeting yesterday in New York, Immelt said earnings next year will rise at least 17 percent as its finance, power and medical businesses mitigate the slowdown. Shares of GE, based in Fairfield, Conn., rose $1.42, or 3.7 percent, to $39.72. They had dropped 20 percent this year, compared with a 14 percent decline in the Standard & Poor's 500 index. GE will use a $1 billion gain from the sale of a satellite unit to offset the costs of the job cuts and the exiting of some of businesses. General Electric is eliminating 22,000 positions company wide this year, though the cuts have been offset by jobs added, said spokesman David Frail. GE had 313,000 employees at the end of last year. Profit at Stamford, Conn.-based GE Capital is expected to rise at least 15 percent next year, Immelt said. The unit employed 90,000 workers. GE expects earnings in 2002 to climb to $1.65 to $1.67 a share from $1.41 a share this year. The forecast for 2002 includes a change in the accounting of goodwill and lower earnings from pension income. GE, the largest company by market value, expects to make acquisitions of industrial businesses that will add $1 billion in profit and $7 billion in sales by 2003. The finance operation will continue to make purchases. Those figures aren't included in the $100 billion in possible acquisitions the company is looking at right now, including purchases at GE Capital with about $300 billion in assets, Immelt said. Also, GE Industrial Systems, which makes factory controls, agreed yesterday to buy Interlogix Inc. for $777 million to add security equipment and services. ( Immelt not long for GE is the talk on the street. Many call him a "bullsh*tter. editor ) _______________________________________________________________________ Monitor Promotes Angelucci to Vice President Lisa H. Rafter, senior vice president and editor of the Monitor announced the promotion of Sue Angelucci to the position of vice president and advertising director. In making the announcement, Rafter said, "Sue has been with us for over 13 years and has consistently demonstrated a unique ability to forge customer relationships which has translated into a business that has grown revenues three-fold over the past five years. She's played a key role in developing our growing monitordaily.com website into the leading real-time information medium in the industry and, more recently, spearheaded the development of our daily E-news broadcast product." She concluded by saying, "Sue exemplifies what excellence and commitment is all about - she richly deserves and has earned this promotion." Jerry Parrotto, Molloy Associates chief executive and publisher of the Monitor concurred by saying, "Over the past 40 years or so, I've worked with a whole host of people in large organizations and small businesses like this one. I can say without reservation, that Sue is perhaps the best example I've ever seen or witnessed of a professional who consistently performs at the top of her game day after day - and that's been the case for the last 12 years. She has a passion for what she does and it shows in her performance. I feel honored to have been a witness to her story." Published monthly, the Monitor has been the leading publication in the equipment leasing and financing industry since 1974 . Each issue provides readers with indispensable, in-depth information supplied by trusted sources in the industry. Monitordaily.com is the most visited web site in the industry boasting over 100,000 hits per day. Launched in 1996, Monitordaily.com is the only daily source committed to delivering the latest news and information affecting the equipment leasing and financing industry. ( courtesy monitordaily.com ) ________________________________________________________________ Thursday---Odds and Ends American Equipment Finance---A reader would like to contact you. Please send us your e-mail address and telephone number. Thank you. editor. ---- As we wrap up a very tough year in the leasing industry, I reflect upon all the usual and expected changes, look at the dramatic changes and pose this question "Are we dinosaurs headed into extinction?" Joe Spencer
-- In regards to Commercial Money Center.....I had a transaction that went through CMC and was suppose to fund in April. The President of CMC even signed a letter on his letterhead for assurance to the vendor that funding would occur within 48 hours. The vendor released the equipment, and funding didn't occur until September. The vendor is pursuing legal action against CMC and I haven't received any applications from the vendor since. A eight year relationship down the tube. Kathryn
Price ( Leasing News has contacted Bill Hansen at CMC several times by e-mail for a response. We have a growing list of companies not being paid. We are aware most time some time, but as Kathryn Price reported, many are way over three months. editor ) ___ Appointment of Leasing Exec. as CEO at United Association of Equipment Leasing. Many e-mails, even telephone conversations, that a statement is forthcoming. Was told it would be Monday, then Tuesday, and then Wednesday for sure. It's getting kind of funny, now. I have an inkling of how Kathryn Price feels about CMC. editor _____ ____________________________________________________________________________ #### ############################## #################################### Heller Financial/GE Capital Launches Fastraq Web-Based Lease Tool TROY, Mich., / -- Heller Financial, a GE Capital company and a leading provider of commercial finance products and services, announced today the launch of "Fastraq," a new web-based, lease transaction tool. The online lease transaction system is being piloted with Tech Data's top U.S. resellers with plans to introduce Fastraq to the entire Tech Data U.S. reseller channel during 2002. Tech Data is one of the world's leading providers of information technology products to customers ranging from small businesses to Fortune 500 companies. Fastraq enables Tech Data's resellers to better control and close equipment lease transactions faster than ever. "Leasing continues to be a very attractive sales tool for customers looking to bundle 'wish-list' items like educational training, maintenance contracts and more into their financing," said Mike Zava, Vice President, U.S. Credit Services for Tech Data. "By making this program available on the web, our resellers can more quickly build a complete financing solution for their end-user customers. We are very excited to be working with Heller to extend this option to our customer base." Heller's fully automated reseller tool allows Tech Data resellers to obtain lease payment quotations online, prepare and submit real-time credit applications, receive automated credit decisions and secure custom-prepared lease documents. This makes it easier than ever for the resellers to submit lease transactions and control the lease process. In many cases, online lease transactions are completed within minutes. Highlights include instant lease quotes; virtually instantaneous credit decisions; 24/7 real-time lease status information; online dynamic lease documents available on demand; and easily accessible online support and tutorials integrated into the system. "Ultimately, Fastraq enables us to provide even better service to both Tech Data's resellers and their customers who want to lease IT equipment," said James D. McGrane, Senior Vice President, Director of Global Growth, GE Capital Vendor Financial Services. "Time is at a premium for everyone, and Fastraq expedites the lease process, making a reseller's job easier." About GE Capital: GE Capital Vendor Financial Services, a global leader in developing and providing financial solutions and services to equipment manufacturers, distributors, dealers and their end users, has more than $16 billion in served assets worldwide. Vendor Financial Services serves approximately 100 manufacturers, 4,500 dealers and currently has more than 500,000 accounts in 33 countries. GE Capital, with assets of more than $370 billion, is a global, diversified financial services company grouped into six key operating segments comprised of 24 businesses. A wholly owned subsidiary of General Electric Company, GE Capital, based in Stamford, Connecticut, provides a variety of consumer services, such as credit cards and life insurance; mid-market financing; specialized financing; specialty insurance; equipment management, and specialized services to businesses and individuals in 47 countries around the world. GE is a diversified services, technology and manufacturing company with operations worldwide. About Tech Data: Tech Data Corporation, founded in 1974, is a leading global provider of IT products, logistics management and other value-added services. Ranked 95th on the Fortune 500, the company and its subsidiaries serve more than 100,000 technology resellers in the United States, Canada, the Caribbean, Latin America, Europe and the Middle East. Tech Data's extensive service offering includes pre- and post-sale training and technical support, financing options and configuration services as well as a full range of award-winning electronic commerce solutions. The company generated sales of $20.4 billion for its most recent fiscal year, which ended January 31, 2001. #### ####################################### ####################### CapitalStream Announces Agreement with Merrill Lynch Business Financial Services Merrill Lynch Business Financial Services signs three year agreement with CapitalStream to provide an online credit solution Seattle, WA CapitalStream (www.CapitalStream.com), a Seattle-based provider of commercial finance automation technology for banks, financial institutions and manufacturers, today announced it has provided its FinanceCenter solution to Merrill Lynch Business Financial Services Inc. for use as an online credit application engine. CapitalStream's FinanceCenter has the ability to automate the commercial finance process across multiple business lines, multiple products and multiple sales channels, lowering costs and enabling companies to take advantage of new business opportunities by automating manual processes for leases, loans, lines of credit and credit cards. Under the terms of this three year agreement, Merrill Lynch Business Financial Services has the ability to use CapitalStream's web-based credit solution, FinanceCenter, to improve its business clients' experience in obtaining loans, gain greater operational efficiencies and provide existing credit customers with greater ease of use online. "Merrill Lynch Business Financial Services is committed to helping our business clients simplify their business finances through integrated cash management, financing, investing and online business banking services," said David W. Tralka, First Vice President and Director of Merrill Lynch Business Financial Services. "FinanceCenter gives us the tools to help our business clients save time and more easily apply for credit online at the Merrill Lynch Business Center." "Our relationship with Merrill Lynch Business Financial Services reaffirms our position as a leading provider of the fastest, most reliable commercial finance automation technology in the industry," said Stephen Campbell, president and CEO of CapitalStream. "FinanceCenter will enable Merrill Lynch Business Financial Services clients to get timely and accurate results with respect to their credit applications, thus expediting the entire commercial finance process." About Merrill Lynch Merrill Lynch Business Financial Services and its affiliates ("Merrill Lynch") provide comprehensive cash management, financing, retirement planning and M&A advisory services to small and midsize businesses. Currently, more than 600,000 of these businesses entrust nearly $185 billion in assets to Merrill Lynch. Merrill Lynch Business Financial Services has provided more than $6 billion in financing to small and midsize businesses. For more information on Merrill Lynch Business Financial Services, visit http://businesscenter.ml.com. Merrill Lynch is one of the world's leading financial management and advisory companies, with offices in 44 countries and total client assets of more than $1.6 trillion. As an investment bank, it is the top global underwriter of debt and equity securities and a leading strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, please visit www.ml.com. About CapitalStream Seattle-based CapitalStream automates and streamlines commercial finance processes for banks, finance companies, and manufacturers. CapitalStream - FinanceCenterÔ, a patent pending technology, reduces processing time, lowers costs, and enables companies to cost effectively take advantage of new business opportunities by automating manual processes for leases, loans, lines of credit, and credit cards. CapitalStream, an established industry leader for more than five years with deep knowledge about the inner workings of the financing world, has helped hundreds of financial organizations increase their competitiveness, customer service and profitability. For more information visit www.capitalstream.com ### ########################################## #################### Merrill Lynch likes transactions secured with stock and from reported experience, is very tight on credit and slow to react. Requiring full financial information, it will be interested to learn how an on line application procedure will speed up the process. You can promise a fast response, but you need to be able to deliver. Merrll Lynch does not have the ability to delivery in a speedy performance, says the broker community. editor ) _____________________________________________________________________________ Policy Statement---Nothing is sent out that is not "fair." Always unbiased reporting. Fairness always. If it is questionable, we will ask the writer's permission to quote them. We will print information without attribution, but feel as long as we do not name the person who sent it, we can use the information. Any information we think is suspicious, we try to have if substantiated first by at least two reliable people. We will not purposely send out "negative" news. We prefer "positive" news. We have no "axe" to grind or are not paid or seek or accept any remuneration for product or promotion. We do not spam anyone. To be added to the mailing list, you must request it. We do not send anything about our company or personal e-mail or jokes to the leasing news list. 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