IBM Credit Reports 2001 Third Quarter Financial Results
IBM Credit Reports 2001 Third Quarter
October 16, 2001 6:00pm
ARMONK, N.Y.--(BUSINESS WIRE)--Oct. 16, 2001--IBM Credit
The annualized return on average equity was 23.6 percent, compared with 18.4 percent in 2000.
New customer financing originations(a) for acquisition of information technology products and services decreased 16 percent to $1.38 billion in the third quarter of 2001, compared with $1.65 billion for the same period in 2000. New commercial financing originations -- providing working capital for inventory, accounts receivable and acquisition financing -- decreased 20 percent to $2.74 billion, compared with $3.41 billion for the same 2000 period.
At September 30, 2001, total assets were $15.31 billion, compared with $16.80 billion at December 31, 2000, a decrease of 9 percent. Retained earnings were $1.23 billion, compared with $1.43 billion at December 31, 2000, a decrease of 14 percent. Retained earnings at September 30, 2000, were $1.53 billion.
Net earnings for the first three quarters of 2001 were $320.21 million, an increase of 4 percent, compared with $307.86 million for the same period of 2000; customer financing originations(a) increased by 7 percent to $4.62 billion, compared with $4.33 billion for the same period of 2000; and commercial financing originations decreased by 12 percent to $8.39 billion, compared with $9.54 billion for the same 2000 period.
IBM Credit Corporation is part of the IBM Global Financing organization. For more information, visit the IBM Global Financing home page at www.ibm.com/financing.
Forward-Looking and Cautionary Statements
Except for historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company\'s filings with the Securities and Exchange Commission.
(a) New customer financing originations reflect assets either owned or managed by IBM Credit Corporation.
CONTACT: IBM, Armonk
Paula Smail, 914/765-6653