CIT to report up to $135m 4Q net loss

CIT Group Inc., which is scheduled to
release its full year results on January 17, has made a string of
write-offs and provisions that will contribute to a net loss of
between $125m and $135m or 65 cents to 75 cents per share, in the
fourth quarter ended December 31, 2007, the company said.

Three actions will impact significantly on fourth quarter
earnings. These included an increase in reserves for credit losses
of approximately $300m, a booking of about $40m in pre-tax
losses on home lending receivables, and a write-off of all goodwill
and intangibles related to CIT’s student lending business acquired
in 2005.

Losses however, will be partially cushioned by a $270m gain on
disposal of its interests in the vendor finance
business. CIT completed its exit from its Dell
Financial Services joint venture and its U.S. Systems leasing
business in December.

“The combination of these items would be a net reduction to
fourth quarter earnings of approximately $355 million after-tax, or
$1.87 per share,” CIT said.

In the nine months ended September 30, 2007, CIT’s net profit
plunged 97% to $19.7m as deterioration in its home lending business
weighed on the group. Combined with the expected fourth quarter
results, CIT may report a full year net loss of up to $115.3m