|
Company
|
Q3 results – financial highlights
|
Comment
|
|
Daimler Financial Services
|
• Revenue: up 5 percent to €2.3 billion.
• Contract volume: up 11 percent to €63.9
billion.
• New business: up 19 percent to €7.7
billion.
• Earnings before interest and tax (EBIT):
up 99 percent to €173 million.
• Contract volume in Europe, Africa and Asia
region: up 12 percent to €37.6 billion.
• In September, Daimler FS started business
operations in Romania.
|
The credit crunch had a negative impact on
Daimler AG, the leasing arm’s parent. Its EBIT fell 66 percent to
€648m,
primarily the result of lower earnings at the Mercedes-Benz
division. However, DFS and the CV divisions of the company reported
improved earnings. Daimler Trucks saw increased unit sales of 4
percent to 122,700 vehicles, while revenue increased from €7
billion to €7.3 billion.
|
|
MAN Financial Services
|
• EBIT: totalled €1 million, against €8
million in Q3 2007.
• Current assets Q1-Q3: €1.5 billion,
against €1.2 billion for same period the previous year.
• Current liabilities: €2.3 billion (€2.06
billion).
• Cash flow from operating activities: -€421
million, due to expansion of financing business with CV
customers.
• Net financial debt: €2 billion (€1.6
billion).
|
Results for MAN AG, the parent, showed an
increase in net sales of 15 percent compared with Q3 2007.
Operating profits rose to €422 million from €334 million. However,
the
company has seen a 30 percent decrease in order intake to €3.1
billion from €4.4 billion in Q3 2007.
Order intake was down 41 percent for trucks
and down 31 percent for buses. The poorer economic outlook, reduced
availability of finance and higher fuel costs are visibly affecting
CV orders.
|
|
Volvo Financial Services
|
• Q3 finance and lease income: SEK2.1
billion (€200,000) in Q3, up 7 percent.
• Q3 new business volume: SEK10.9
billion.
• Delinquencies, repossessions and
write-offs increased, but are “still at manageable levels” due to
focus on credit quality.
|
After significant sales income in Q1 and Q2,
Volvo Group’s sales growth decelerated much more rapidly than
expected. In Q3, net sales were up 2 percent to SEK69.6
billion
(€6.6 billion). The Q3 operating income was down 37 percent to
SEK3.1 billion.
The company has seen a “significant impact”
from increased costs for raw materials and components.
The demand for trucks has seen a slowdown in
Europe (after a strong H1 2008). Deliveries from truck operations
decreased by 5 percent in Q3, order bookings declined
sharply and operating profit fell to SEK2.7 billion.
|
|
Paccar Financial Services
|
• Portfolio: 169,000 trucks and
trailers.
• Total assets: $10.7 billion (€8.5
billion).
• PACCAR Leasing (truck leasing company in
North America) is included in this segment.
• Q3 pre-tax income: $45.5 million, against
$73.4 million in
Q3 2007.
• Q3 revenue: $323 million, against $313.2
million in Q3 2007.
• Q3 provision for credit losses: $34.2
million ($24.4 million in Q2 2008).
|
PACCAR has experienced a lower truck demand
in Europe and other markets. The American CV manufacturer – which
operates in Europe through its subsidiary DAF Trucks – has had a
slowdown both in Western and Central Europe and is reducing its
build rate.
Consolidated sales and revenues reached
$12.06 billion and net income was $905 million.
|
|
Scania Financial Services
|
• Customer finance portfolio: SEK41.1
billion (€4.06 billion), an increase of SEK3.6 billion since end
2007.
• Financing volume: SEK16.5 billion (SEK14.5
billion same period last year).
• Operating income: SEK84 million (SEK126
million).
• Q1-Q3 operating income: SEK366 million
(SEK378 million).
• Total assets: €4.4 billion.
• Number of delayed payments up.
• Increased bad debt expenses attributable
to markets such
as Germany.
|
Scania’s operating margin rose by 15.8
percent, while net sales were 11 percent up.
The Swedish company will adjust its
production rate due to lower order bookings for trucks in
Europe.
But the demand was high in Russia and Latin
America.
In Q3, order bookings for trucks fell by 41
percent to 9,927 (16,830) trucks. In Western Europe, it was 69
percent down.
Buses and coaches demand in Europe fell by 6
percent in the first nine months of 2008. However, Italy and
Denmark noted rising demand.
|
|
BMW Financial Services
|
• Revenues: up 14.4 percent year-on-year to
€4.08 billion.
• EBIT: -€26 million following profits of
€176 million in Q3 2007.
• Profits before tax were -€17 million
following profits last year of €191 million.
|
The number of lease and finance contracts in
place with
dealers and retail customers grew by 17 percent in the nine-month
period to 30 September 2008 to just under 3 million, with new
contracts during Q3 2008 growing by 14.7 percent year-on-year to
313,173.
Leasing business was up 4.2 percent during
the first nine months of the year while credit financing increased
by 21.4 percent. “Leasing business and credit financing accounted
for 34.3 percent and 65.7 percent respectively of new
contracts signed,” the captive reported.
Penetration rates for the Financial Services
division among buyers of BMW vehicles also performed well, up 3.3
points to 48 percent during the first nine months of the year.
|
|
Company
|
Q3 results – financial highlights
|
Comment
|
|
IBM Global Financing
|
• Revenues: up 1.7 percent (down 1 percent,
adjusting for
currency) in Q3 to $633 million (€502 million).
• Pre-tax income: almost $350 million, about
9 percent of IBM’s pre-tax income.
• Financing revenues: up 6 percent.
• Debt: totalled $24.5 billion at 30
September 2008.
• External receivables: totalled some $24
billion.
|
IBM GF has seen revenues increase to $633
million in Q308, equal to about 2.5 percent of IBM’s total revenue.
This adds up to $1.9 billion in the nine months ending 30 September
(compared with $1.8 billion last year).
With a debt totalling $24.5 billion, IBM
GF’s debt-to-equity ratio is an “appropriate” 7.1 to 1.
The company’s external receivables, more
than $24 billion,
represent about 21 percent of IBM’s total asset base.
|
|
Dell Financial Services
|
• $1.52 billion (€1.2 billion) in net
financing receivables in Q3 (compared to $1.56 billion
year-on-year).
• Balance sheet losses were equal to 6.5
percent (compared with 2.8 percent year-on-year).
• 60+ day delinquencies were equal to 3.4
percent (compared with 1.8 percent year-on-year).
|
The main announcement was that after
conducting a strategic assessment of Dell Financial Services in
September, Dell confirmed it would keep its captive arm.
“DFS drives incremental sales and margin,
and is profitable for us in the current environment and credit
cycle,” said CFO Brian Gladden.
DFS has tightened credit policies five times
in the past 18 months in a bid to anticipate future credit
losses.
Despite seeing a rise in delinquencies, DFS
has seen improvements in delinquencies on new business. The company
also said that “established securitisations remain liquid;
although, as expected, deal costs have increased”.
|
|
Cisco Capital
|
• Combined balance sheet and contingent
liability position of $4.4 billion at the end of Q109.
• Of that amount, a net reserve and deferred
revenue position of $2.5 billion.
• Last year Cisco Capital originated or
facilitated $4.3 billion in lease and long-term loan
arrangements.
• Operating profit of $51 million in Q4.
|
Cisco “remains comfortable” with the credit
profile and the way Cisco Capital deploys its capital.
Cisco Capital’s net reserve and deferred
revenue position of $2.5 billion represents over 50 percent of the
financing portfolio position.
Cisco has not accessed any capital markets
for funds to finance Cisco Capital operations.
Cisco Capital has seen the number of credit
requests and enquiries increase as a result of the current
environment.
|
|
HP Financial Services
|
• Revenue of $691 million.
• Financing volume up 5 percent
year-on-year.
• Net portfolio of assets is $8.1 billion
(down 2 percent year-on-year).
• Net capital expenditures of $438
million.
|
In terms of regions, EMEA accounted for 33
percent of
revenue (against 56 percent for the Americas, and 11 percent for
Asia Pacific).
HP CFO Cathie Lesjak said: “We are
encouraged with the growth of our financing volume. The overall
portfolio is
performing well, consistent with the past few years.”
With $7.4 billion of debt, HPFS accounts for
41 percent of HP’s total debt.
With revenue of $691 million, up 5 percent
year-on-year, HPFS has generated an operating margin of 7.4
percent.
|
|
Caterpillar Financial Services
(worldwide)
|
• Revenues at €619 million, up €12.8 million
(2 percent growth year-on-year).
• Profit before tax at €125 million, down
€24.8 million
(17 percent) year-on-year.
• Profit after tax at €94 million, down €12
million (11 percent) year-on-year.
• New retail financing at €3.5 billion, up
€642 million
(22 percent) year-on-year.
|
Revenue growth due to €84.8 million from
continued growth of finance receivables and operating leases. This
was
offset by €69.6 million decrease from lower interest rates on
receivables.
Profit fall: partially due to €30.4 million
decrease in net
yield on average earning assets, €12.8 million increase in
operating expenses, €10.4 million rise in provision expenses,
offset by €32 million increase from higher than average
earning assets.
|
|
UniCredit Global Leasing
|
• Revenues increased by €17 million to €167
million (up 11.3
percent year-on-year).
• Profit before tax decreased by 17.2 percent .
• Total operating expenses reached €65 million.
• Net interest income increased by 5.6 percent year-on-year and net
non-interest income grew by 38.5 percent YoY to €36 million.
|
Since consolidating its German, Italian and
Austrian leasing companies together with its CEE subsidiaries,
UniCredit Global Leasing has seen its revenues increase by 16.7
percent, to €523 million, in the first nine months of 2008.
Profit before tax was hit by a 17.2 percent
decrease, down €16 million year-on-year to €77 million, in Q308.
Year-to-date profit before tax, however, was €245 million, up by
4.7 percent on the first nine months of 2007.
Operating expenses increased by 18.2 percent
year-on-year, largely due to staff increases in the CEE area.
In terms of geography, growth was higher in
the CEE countries and Austria. A slowdown of new business in Italy
is attributed to real estate contracts, where volumes decreased by
33 percent.
|
|
Crédit Agricole Leasing
|
• Net banking income increased 11.4 percent
YoY to
€66 million.
• Total operating expenses rose 2.8 percent YoY to €41
million.
• Gross operating income reached €25 million, up 28.9
percent year-on-year.
|
CA Leasing has provided €3.3 billion in new
financing in France since the beginning of the year.
Outstandings
rose to €14.4 billion (an increase of 12.7 percent year-on-year) –
16.5 percent of which can be attributed to the
financing of sustainable development projects and public sector.
Production also rose 27.3 percent year-on-year, to €4.2
billion.
|
|
John Deere Financial Services
|
• Net income of €67 million for Q3, down
10.4 percent from €74 million for Q3 last year.
• Net income of €214 million for year to date, up 0.5 percent on
€213 million last year.
|
Results for credit operations lower due to
higher selling, administrative and general expenses, increase in
leverage, higher provision for credit losses, and lower income from
receivable sales.
Partially offset by growth in credit
portfolio and higher commissions from crop insurance.
|
