Whatever Happened to.... answer tomorrow------
"
**** came to WAEL from the Independent Banker's Association after search committee
interviewed more than 20 candidates and reviewed more than 100 resumes. ****'s
strengths were his written communications and publications... To say we had some
tough finance meetings before the BOD met is a gross understatement..."
Jim
Possehl, Republic Financial Group,Aurora, Colorado
Structured On Line Leasing Offerred by E-Leasing and American Leasing and Financial
E-leasing, in affiliation with ebank (NASDEC:EBDC), a publicly traded bank with
corporate headquarters in Atlanta, Georgia, announces the re-launch of the Structured
Program - A nationwide leasing and financing offering.
e-leasing ( otherwise
known as American Leasing and Financial) is dedicated to establishing leasing
programs to meet the leasing brokers needs. Adrian Eultan and Michael Lousy originated
The Structured Program in 1986. e-leasing will fund deals that other Lenders will
not touch such as start-ups, previous credit problems and weird equipment. However,
rates are high and the applicant will be required to pledge liquid collateral
or free and clear real estate.
The
principals of c-leasing, Adrian Eulman and Michael LOSC~, stated that their goal
was to offer the leasing broker community leasing program. ranging from 'A" credit
deals to "D" credit deals and c-leasing was actively soliciting the entire spectrum
of lease credits.
Jim
Thrown, executive vice president of ebank, is enthusiastic about this offering
and states 'ebank has banked the principals of eleasing mince our inception. We
have an excellent working relationship with Adrian and his partner Michael, which
includes financing lease transactions. ebank is pleased to be a strategic partner
with and experienced leasing Company such as c-leasing and we consider this to
be an integral method to enhance and expand our programs nationwide. This leasing
vehicle is just another means for ebank to project its programs nationwide".
About
e-leasing
eleasing
(also known as American Leasing & Financing ) provides complete packaged leasing
and financing solutions across the entire leasing credit spectrum. The corporate
officers, Adrian Bulman (prior NAELD Treasurer) and Michael Losey (prior NAELS
President), have been in the leasing business since the early 1970's. Unlike traditional
leasing firms, c-leasing targets start-ups, previous credit problem. and unusual
equipment deals in addition to "A" credits.
About
ebank.com
ebank
is an independent, national unitary thrift bank that serves small businesses and
consumers through online banking over the Internet. Their goal is to provide the
easiest, most responsive and hassle-free banking. ebank offers the broadest range
of state-of-the-art products and services. All are faster, more flexible, and
cost less than ever before.
Kit, Good stuff. Thanks for including me in your newsletter. I didn't realize
you guys have mixed in the commentary and the personal side. It has a different
flavor - kinda cool.
Phil
Silva
National Accounts Group American Express Equipment Finance
11903
South Player Drive,
Spokane, WA 99223
509.448.4987 (ofc),
509.448.9258
(fax),
psilva@amexef.com
High Tech Start-ups Identify Equipment Leasing AsKey to Financial Success
Cross-Country
Study Shows Start-Ups Use Equipment Leasing as
A
Financial Strategy for Leveraging Capital and Resources
ARLINGTON,
Va., -- In a study released late yesterday of high tech start-ups headquartered
in the Washington, D.C., San Francisco, Denver and New York areas, nearly 100
percent of companies surveyed attributed a significant degree of their financial
success to equipment leasing. The study, named "The Start-Up Strategy: Leasing
to Succeed," conducted by the Equipment Leasing Association (ELA) from July -
September 2000, demonstrated that equipment leasing is considered a critical component
to the financial success of a high-tech start-up.
Unique
to the high-tech start-up market space, participants noted that leasing provided
the opportunity for a lower recorded burn rate (the rate at which the company
is spending its capital while waiting for profitable operation). "For high tech
companies, cash and capital are even more critical than for slower growth companies.
By leasing equipment, we can use our capital to rapidly expand our technology
and stay ahead of the competition," said Jim Fox, chief executive officer of EqualFooting.com.
Other
benefits of leasing cited by start-ups include increased cash flow, tax benefits,
balance sheet management and avoiding technology obsolescence. With the cash flow
that was conserved as a result of leasing, companies are reinvesting funds into
technology, research and development, marketing and staff.
Study
participants, who are growing on average at a 40 percent rate and higher, expect
their leasing dollars to increase as they continue to grow. One of the participants
noted an expected 600 percent increase in leasing volume over the upcoming months.
Technology
equipment leads the types of equipment most often leased by start-ups. Equipment
leased by study participants includes: computers, telecommunications equipment,
printers, servers, database storage, software, copiers and fleet vehicles. Almost
all participants expressed an interest in an increased availability of software
leasing.
ELA
conducted this study as a result of the proliferation of high- technology start-ups
into the market, and designed the study to measure the impact of the emergence
of high technology start-ups on the leasing industry. The study was divided into
five sections: Start-up Financing Strategies; Start-up Attitudes Toward Leasing/Equipment
Leasing; The Lessor; Start-up Attitudes Toward the Internet/E-Commerce; and Starting
a Company -- Attitudes and Trends.
ELA
surveyed CXOs/founders and financial executives at companies that were founded
no earlier than 1995 and provided products or services for the technology market
space. It was not a requirement to lease equipment to participate in the study.
To request
a copy of the report, "The Start-Up Strategy: Leasing to Succeed" please contact
Eileen Jaffe: ejaffe@promarcagency.com.
The Equipment Leasing Association (ELA) is a nonprofit organization headquartered
in Arlington, VA, representing more than 800 member companies, which provide a
variety of asset-based financial products, primarily equipment leasing. By year-end
of 2000, equipment leasing is estimated to be a $233 billion industry.
SOURCE Equipment Leasing Association
CO: Equipment Leasing Association
ST:
District of Columbia, California, New York, Colorado
eOriginal Inc. Names George Deehan President of the Leasing Industry Group
Former
President and CEO of Advanta Leasing Services Tapped to Grow
eOriginal's Leasing Division
BALTIMORE, Md., Nov. 21 /PRNewswire/ -- eOriginal Inc., a leading provider of
business-to-business e-commerce solutions, today announced the appointment of
George O. Deehan as President, Leasing Industry Group. eOriginal's patented process
streamlines paper-laden business procedures and agreements, including equipment
leases, cutting costs dramatically. Mr. Deehan brings more than 30 years of experience
in the financial services industry to eOriginal. His leadership will be instrumental
in establishing eOriginal as the leading technology solutions provider to the
leasing industry. In his role as President, Mr. Deehan will oversee strategic
planning, systems integration, national marketing and sales initiatives for eOriginal's
leasing products.
"The equipment and asset leasing industry spends more than a billion dollars a
year to close business deals on paper. By integrating eOriginal's technologies,
these companies can streamline processes-not only saving time and money but establishing
themselves as industry movers through new efficiencies," said eOriginal CEO, Craig
D. Jung. "Mr. Deehan has a proven record in introducing new missions, strategies
and leadership teams and an extremely deep knowledge of the equipment leasing
field."
Prior to joining eOriginal, Mr. Deehan was President and Chief Executive Officer
of Advanta Leasing Services, the business equipment leasing unit of Advanta Business
Services, where he more than doubled earnings last year and grew quality volume
more than 40 percent. He has also served as president and chief operating officer
of NCR Credit Corporation and as senior vice president of marketing and sales
of AT&T Capital, Canada. Additionally, he was president and chief operating officer
of METLIFE Capital and Credit Corporation and Litton Financial Services.
About eOriginal
eOriginal
Inc. is the leading provider of a comprehensive business-to- business e-commerce
solution enabling enterprises to execute secure, online business transactions
in which legally enforceable electronic documents completely replace paper as
the essential high value assets or source records of a deal.
eOriginal
is unique. It is the only company that offers a complete, comprehensive and integrated
solution capable of creating Electronic Original(TM) documents that are legally
accepted a negotiable instruments and insured by a respected global insurance
provider, and the only e-commerce solution that fully complies with all six transferable
record criteria of E- Sign and Uniform Electronic Transactions Act (UETA) legislation.
The company's patented business process provides the ability to create Electronic
Original(TM) documents that are unique, identifiable, authentic and unalterable,
survive the execution of the transaction and serve as permanent, original source
records in electronic form. Electronic Original(TM) documents are as authentic
and trustworthy as signed, legally enforceable paper documents.
eOriginal
Inc. is headquartered in The Warehouse at Camden Yards in Baltimore, MD. For further
information, please visit http://www.eoriginal.com/.
SOURCE
eOriginal Inc.
CO: eOriginal Inc.
ST: Maryland
USBANCORP CEO Volunteers Salary Freeze
JOHNSTOWN,
Pa., Nov. 21 /PRNewswire/ -- Orlando B. Hanselman, USBANCORP Inc.'s (Nasdaq: UBAN)
Chairman, Chief Executive Officer and President, announced today that he is voluntarily
freezing his base salary for four years through January 1, 2005.
Hanselman's
base salary will be frozen at the current level of $236,000. An independent Arthur
Andersen market study dated November 2000, stated that the 50th percentile base
salary for a position comparable to Hanselman's in similarly sized institutions
is $315,000, and the 25th percentile is $242,000.
"The banking industry is facing significant challenges today," Hanselman explained.
"These challenges include cyclical rising interest rates that are compressing
banks' net interest margins, reducing loan demand, and squeezing profits from
investment leverage and mortgage banking. More profound and unprecedented challenges
include expanded competition from non-banks such as Wal-Mart, State Farm, and
the large brokerage houses, as well as adaptation to a 24-hour, seven day-a-week
e-commerce economy.
"USBANCORP is addressing these challenges head-on with progressive strategies
and new technology. During this period, however, our earnings and stock price
are down. Like our industry, we need to see a turn in the economic cycle back
to lower and falling interest rates and must have time for our adaptation to the
e-commerce economy to show earnings, not just costs. I want our stakeholders to
know that I am committed to USBANCORP for the long- term and I continue to be
bullish on our future."
USBANCORP's
primary core businesses -- retail banking, commercial lending and leasing, and
trust and financial services -- each have achieved increasing returns on equity
during 2000 as compared to 1999. Cyclical rate pressures during 2000 have caused
average monthly revenue from USBANCORP's leverage program to decline to $170,000
from the 1999 monthly average of $558,000, and USBANCORP's wholesale mortgage
business to lose $630,000 through September 30, 2000.
"Our
business is cyclical and the rate environment is not currently favorable," Hanselman
said. "But the rate cycle will again turn favorable. Until that time, my bullishness
comes from our well defined strategies and the improving returns from our core
businesses."
USBANCORP,
Inc.'s Board of Directors carefully considered Hanselman's offer of a voluntary
base salary freeze and the Arthur Andersen study. In accepting Hanselman's freeze,
the Board unanimously approved a non-recurring signing bonus for Hanselman in
recognition of his promotion to Chairman and Chief Executive Officer earlier this
year. The unanimously approved bonus consists of 30,000 shares of USBANCORP common
stock, with an associated cash gross-up for taxes, to be provided by December
31, 2000.
By
using common stock to compensate Hanselman for the next four years, the Board
is championing the interests of USBANCORP, Inc.'s shareholders by more closely
aligning the executive's interests to share price appreciation. The Board also
wants to continue to emphasize a philosophy of "shareholder friendliness" in compensation
policy by placing more executive compensation "at risk" based upon performance.
These
actions by the Board and Hanselman demonstrate their mutual commitment to USBANCORP,
Inc. shareholders and their shared belief in the strength of the Company today
as well as the expected prosperity of the future.
At
September 30, 2000, USBANCORP had total assets of $1.27 billion and shareholders'
equity of $73 million or $5.47 per common share. USBANCORP's common stock currently
trades at a market price approximating 71% of book value and 9 times expected
2000 operating earnings and 6.6 times expected 2000 cash operating earnings. At
current price levels the annual common dividend of $0.36 per share approximates
a 9% dividend yield.
USBANCORP,
a financial holding company (pursuant to the Gramm-Leach-Bliley Act), is the parent
of U.S. Bank and USBANCORP Trust and Financial Services Company in Johnstown;
Standard Mortgage Company in Atlanta, Georgia; UBAN Associates of State College;
and United Bancorp Life Insurance Company in Arizona. The Company's U.S. Bank
subsidiary also has mortgage companies based in both Greensburg and State College.
USBANCORP's customer reach is extensive beyond its primary dominant market of
Cambria and Somerset counties. Standard Mortgage Company has mortgage origination
operations in 14 states predominantly in the Southeast. U.S. Bank Leasing has
clients in ten states including Alabama, California, Florida, Mississippi, New
Mexico, Ohio, Oklahoma, Pennsylvania, Wisconsin and Texas. UBAN Associates, the
consulting subsidiary, has banking clients in Pennsylvania, Ohio, Texas, Florida,
and West Virginia. USBANCORP Trust and Financial Services, with $1.4 billion of
client assets under management, has union investor clients in Pennsylvania, Ohio,
Michigan, West Virginia, and Indiana.
SOURCE USBANCORP, Inc.
CO: USBANCORP,
Inc.
ST: Pennsylvania
Countdown to Crisis: Chrysler's Downward Spiral ChronicledAt www.TheCarConnection.com
DETROIT,
Nov. 21 /PRNewswire/ -- The deepening crisis at DaimlerChrysler's U.S. division
has claimed three more executives -- and could bring even more dramatic changes
to the former Chrysler Corp., according to today's edition of www.TheCarConnection.com
, the Web's automotive authority.
As
the maelstrom continues to swirl around DaimlerChrysler, three more executives
have left the building in Auburn Hills -- among them sales VP Ted Cunningham,
PR boss Tony Cervone and chief administrative officer Kathleen Oswald, the top-ranking
woman in the auto industry. Will the arrival of the Germans usher in a new era
at the U.S. division -- or merely hasten the demise of one? And what about the
rumors of a massive investment by Toyota? TCC reports on the latest from Auburn
Hills this morning, and offers a new edition of the "Chrysler Chronicles," the
site's review of the merger mania fairy tale now turned grim.
You'll
find lots more at TheCarConnection.com , including service tips from our resident
gearhead Bob Weber; buying, selling, and leasing tips; and a wide range of news,
views, and reviews from the automotive world's top columnists and correspondents.
TCC
will help you find the right price for new and used cars -- and give you the tips
you need to be a smarter shopper or seller. Let our On-Site Mechanic help you
keep your car running in top shape. And our very own CarGirl offers up common
sense on a wide range of topics. Whatever you're interested in, we've got everything
automotive on the Web's automotive authority, www.TheCarConnection.com .
Web users can also access The Car Connection by going to the PR Newswire site,
www.prnewswire.com .
SOURCE The Car Connection
CO: Car Connection
ST: Michigan IN: AUT MLM
MicroFinancial Announces Purchase Agreement with Resource Leasing Corporation
WALTHAM,
Mass.--(BUSINESS WIRE)--Nov. 21, 2000--MicroFinancial (NYSE:MFI) today announces
that its wholly owned subsidiary, Leasecomm Corporation, has signed an agreement
to acquire a major portion of the assets of Resource Leasing Corporation, Herndon,
Virginia. As part of the transaction, MicroFinancial acquires a major portfolio
of rental and lease contracts, the use of the name Resource Leasing, and its current
employees, including founder and President Chip Nichols. The
transaction is expected to close within the next few weeks.
"Resource Leasing is a terrific complement to our existing operation," says Peter
Bleyleben, President and CEO of MicroFinancial. "Although we have both been operating
in the same general marketplace, we have been providing different products and
services to different sets of customers. We expect Chip and his team to continue
to market their current set of products and services to their traditional customer
base. With this acquisition, we will be in a stronger position than ever to offer
a complete range of financing options to the credit card processing and merchant
services industries."
Chip
Nichols, President and founder of Resource Leasing Corporation says, "The financial
strength and operational expertise of MicroFinancial will certainly strengthen
our position in the marketplace. We will be able to offer a more complete range
of products and services to our existing customers, as well as enter into new
relationships. Additionally, I look forward to working with Peter Bleyleben and
the rest of the MicroFinancial management team."
MicroFinancial
Inc., (NYSE:MFI), headquartered in Waltham, MA, and with additional locations
in Woburn, MA, and Newark, CA, is a financial intermediary specializing in leasing
and financing for products in the $500 to $10,000 range. The company has been
in operation since 1986 and has been profitable each year since 1987.
Founded
in 1985, Resource Leasing Corporation is a leading provider of equipment financing
products and related services in the point-of-sale industry.
Statements
in this release that are not historical facts are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In addition, words such as "believes," "anticipates," "expects,"
"views," and similar expressions are intended to identify forward-looking statements.
The Company cautions that a number of important factors could cause actual results
to differ materially from those expressed in any forward-looking statements made
by or on behalf of the Company. Readers should not place undue reliance on forward-looking
statements, which reflect the management's view only as of the date hereof. The
Company undertakes no obligation to publicly revise these forward-looking statements
to reflect subsequent events or circumstances. The Company cannot assure that
it will be able to anticipate or respond timely to changes that could adversely
affect its operating results in one or more fiscal quarters. Results of operations
in any past period should not be considered indicative of results to be expected
in future periods. Fluctuations in operating results may result in fluctuations
in the price of the Company's common stock. For a more complete description of
the prominent risks and uncertainties inherent in the Company's business, see
the risks factors described in documents the Company files from time to time with
the Securities and Exchange Commission.
CONTACT:
MicroFinancial Inc.
Richard F. Latour
781-890-0177
Richard.Latour@leasecomm.com
56 Leasing Companies Major Changes
Advanta
Leasing ( for sale, president now at eOriginals, others let go such as Kaye Lee)
Affinity Leasing, Washington ( 12/2000 to close )
American Business Leasing
( gone )
Balboa Capital ( Founder Byrne "...office available any time he wants
to use it" ).
The Bancorp Group, Inc. (Southfield, MI) (Not accepting news
business. The BOD of the parent bank is assessing what
to do with the leasing subsidiary.....currently servicing portfolio but not originating.
no longer in business )
Bankvest (bankrupt)
Bombadier ( reported having
problems, not confirmed )
BSB Leasing (11/2000 closed to accepting new buisness
)
Charter Financial ( purchased by Wells Fargo 9/5/2000 )
Colonial Pacific
(11/98) purchased by GE Capital 5/2000 no more re-brokered applications, except
from one or two sources, such as Steve Dunham's Leasing
Associates )
Commerce Security ( 9/99 closed to leasing broker program )(11/99
last fundings)
Comstock Leasing ( 3/2000 Unicapital then Linc and discontinued
operation this date )
Copelco ( 4/2000 sold to Citibank/10/2000 stock down
rated/10/2000 ceases broker business, many complaints in manner turning off faucet
)
Creative Capital" of Bloomfield Hills, MI. ( shut-down 3/2000 )
Dana
( sold off, active as captive )
DVI Capital ( out of broker )
El Camino
Leasing, Woodland Hills, Caifornia (10/2000 No longer taking broker business )
eLease ( June/July/2000 senior management changes )
FMA Finance ( reportedly
closed to brokers )
Fidelity ( 4/2000 acquired by EAB, a wholly owned subsidiary
of ABN AMRO Bank N.V., headquartered in the Netherlands,
raising funds )
Finova ( out of market place )( 10/2000 Dow Jones headlines
"Finova Stock Falls As Buyout Hopes Wane 10/2000 Dow Jones
notes stock falling and problems at Finova 11/2000 Announces they will
discontinue business, sell units 11/2000 Suspends Dividend 11/2000 Leucadia National
to Invest $350 Million in Finova 11/2000 reports $274
million loss ))
First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing
division-$64 million---)
Franklin Leasing, Des Moines, Iowa--owned by Liberty
Bank-- (2/2000)-no longer writing leases ( limited by
regulations and leases are for sale ).
Franchise Mortagage Acceptance Corporation
(FMAC) 11/1999 purchased by Bay View Commercial Corporation (Bay View Bank) 9/2000
discontinuing all franchise loan and lease production.
Golden Gate Funding
( 2/99 purchased by Westover Financial )
Heller Financial's Commercial Services
Unit ( 10/99 purchased by CIT )
Imperial Credit Industries (ICII) ( sold portfolio
)
Japan Leasing Credit claims ( JLC --6/99 purchased by Orix ) Lease Acceptance
Corp---( ceases broker business 7/26/2000 ) Leasing Solutions
( bankrupt )
Liberty Leasing ( closed, California company )
Linc Capital
( out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last
quarter,10/2000 assets for sale )
Lyon Credit Corporaton
( 9/99 purchased by Hudson United Bancorp )
Manifest Group--( 9/1/2000 purchased
by US Bancorp Leasing and Financial, "...a win for all the parties
involved," Brian Bjella.
Matsco Financial ( purchased by Greater Bay Bank
)
Merit Leasing ( gone )
Metwest Leasing, Spokane Wa. ( 9/2000 advising
brokers that they have run out of funds so they are unable
to fund a transaction we have there for funding. 11/2000 Metwest Leasing Spokane,
WA. is pulling the plug, confirmed by five sources. )
Metrolease--reports closing operation,John Blazek at Evergreen Leasing, Hathcock
losing assets, will not confirm nor deny; many serious
rumors of serious fraud floating around the marketplace, including
debt to Textron Financial.)
NationsCredit, Business Leasing Group (1/29/99
sold to Textron**) *"The Business Leasing Group of Nations Credit was sold to
Textron and we still do broker business," Jim Merrilees, very well respected
individual in the leasing industry..
NIA National Leasing ( 3/2000 purchased
by Lakeland Bancorp )
New England Capital ( sold to Network Capital Alliance
a division of Sovereign Bank. Sovereign did hire two people
who will run a sales office in CT, doing basically the same deals with the same
people as before. Little will change in that aspect.
Newcourt
( sold off )
Onset Capital ( Irwin buys 87% equity )
Orix 10/2000 "long-term
Outlook has been revised from Stable to Negative" Credit Allianchat it has changed
its name to ORIX Financial Services, 9/2000 Japanese Bank President Committs Suicide
(Orix is a 14.7% shareholder in bank having problems ),
( 8/2000 closes small ticket vendor division in Portland,
Oregon, "Business as usual (in New Jersey and with brokers)," says Steve Geller
11/8 New President at Orix appointed 11/10 First Six Month Profits up 14% at Orix!
)
Phoenix ( both divisions closed )
Republic Leasing, South Carolina 9/27/2000
( "The expected result will be a sale of Republic Leasing"---Dwight
Galloway )
Resource Leasing, Herndon, Virginia ( 11/2000 MicroFinancial/Leasecomm
acquires major portion of the assets.)
Rockford (
sold to American Express )
Scripp Financial ( 6/29/2000 ( purchased by US
Bancorp )
Signature Leasing, Dublin, Califronia ( 11/2000 no longer in small
ticket marketplace )
SDI ( closed to broker programs )
SFC Capital ( 9/15/2000
purchased by Trinity Capital )
SierraCities (11/2000 acquired by Vertical
Net Credit )
T&W, Washington (10/2000 filed Chapter 11. Creditors meeting
on 12-4-00 Seattle. Case #00- 10868 US Bankruptcy Court
Western District of Wash. 206-553-7545. Debtor Attorney-Marc Barreca
206-623-7580)
Transamerica ( for sale, but no buyers, so taken off marketplace,
no longer for sale )
Unicapital ( $11.4 million first quarter loss chairman,CEO,CFO
resign, 38 employees cutback, BofA extends credit to November
20, as Unicapital closes down divisions, not accepting new business, winding
down, reportedly to file bk Nov 15 ).
Varilease ( 11/2000 closed down )
USA Capital Leasing ( gone-bk )
any
corrections, additions, comments will be appreciated. We are presently working
on dividing the list into last twelve months and prior.
Bob Cragnin's Name is Not Mentioned, but in our original story, we are told he
was the lead in putting this together for CIT----
Agilent
Results Hyped by Gain On Sale of Portfolio to CIT By David P. Hamilton, The Wall
Street Journal Agilent Technologies reported strong growth in sales and profit
for its fiscal fourth quarter, exceeding Wall Street estimates, although its profit
was bolstered by the sale of certain leased assets.
The Palo Alto, CA, maker
of scientific instruments and test equipment said net income for the quarter ended
Oct. 31 more than doubled to $305 million, or 66 cents a diluted share, from $146
million, or 39 cents a share, on fewer shares in the year-earlier period.
Those
results include a $25 million pretax charge related to the restructuring of Agilent's
beleaguered health-care products group, which it agreed to sell to Philips Electronics
NV of the Netherlands for $1.7 billion. Excluding that restructuring charge, Agilent
would have reported earnings of 69 cents a share. Analysts surveyed by First Call/Thomson
Financial expected Agilent to report earnings of 53 cents a share.
Agilent's
results also included a special gain of 17 cents a share resulting from the sale
of certain leased assets to CIT Group, a commercial-finance company based in Livingston,
NJ. Unlike the restructuring charge, however, that gain was included in the consensus
estimate, which analysts said was guided by Agilent. Such special gains are often
excluded from regular earnings because they represent nonrecurring, one-time gains.
Agilent said that including the gain was appropriate because the sale reflected
a normal business operation - in this case, the sale of Agilent equipment to customers
who had previously leased it. Agilent expects special gains from the arrangement
with CIT to continue through the current year.
Revenue at Agilent rose 38%
to $3.37 billion in the quarter, from $2.45 billion in the year-earlier period.
At 4 p.m. in New York Stock Exchange composite trading Monday (11/20/00), Agilent
shares fell $2.75, or 5.8%, to $44.63.
Agilent's test and measurement business
turned in a strong performance, with revenue growing 67% and operating profit
more than tripling to $419 million from $104 million in the year-earlier quarter.
By contrast, the health-care products group saw its revenue fall 22%, to $355
million from $458 million, and swung to a $43 million loss in the quarter from
a $39 million profit in the year-earlier period.
Edward Barnholt, Agilent's
chief executive officer, said the company expects to see revenue growth of at
least 20% in the current year, and net profit equal to about 8% of revenue.
