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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) October 15, 1998
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CASE CREDIT CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
33-80775-01 76-0394710
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(Commission File Number) (I.R.S. Employer Identification No.)
700 State Street, Racine, Wisconsin 53403
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(Address of Principal Executive Offices) (Zip Code)
(414) 636-6011
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On October 15, 1998, Case Credit Corporation ("Case Credit") announced
its unaudited financial results for the quarter ended September 30, 1998. This
announcement is filed as an exhibit hereto and is hereby incorporated by
reference.
The following tables summarize the earnings and financial position of Case
Credit and consolidated subsidiaries as of September 30, 1998 and for the three
months and the nine months ended September 30, 1998.
SUMMARY INCOME STATEMENT DATA
(Millions)
(Unaudited)
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<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Revenues
Interest income and other $ 108 $ 75 $ 264 $ 201
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Total 108 75 264 201
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Costs and Expenses
Selling, general and administrative 12 7 33 22
Interest expense 43 28 103 72
Other, net 14 6 32 16
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Total 69 41 168 110
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Income before taxes 39 34 96 91
Income tax provision 14 11 34 29
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Net income $ 25 $ 23 $ 62 $ 62
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SUMMARY BALANCE SHEET DATA
(Millions)
(Unaudited)
<TABLE>
<CAPTION>
September 30,
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1998 1997
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<S> <C> <C>
Assets
Cash and cash equivalents $ 23 $ 45
Accounts, notes receivable and other - net 2,411 1,723
Property, plant and equipment - net 2 3
Other assets 598 219
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Total $3,034 $1,990
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Liabilities and Equity
Current maturities of long-term debt $ -- $ --
Short-term debt 1,195 1,199
Accounts payable and other accrued liabilities 49 60
Long-term debt 1,351 410
Other liabilities 28 3
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Total liabilities 2,623 1,672
Equity 411 318
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Total $3,034 $1,990
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During the first nine months of 1998, limited-purpose business trusts
organized by Case Credit issued $1,379 million of asset-backed securities to
outside investors. Case Credit has sold $1,403 million of U.S. and Canadian
retail notes to the trusts in connection with these issuances. During the first
nine months of 1997, limited-purpose business trusts organized by Case Credit
issued $1,706 million of asset-backed securities to outside investors. Case
Credit had sold $1,301 million of U.S. and Canadian retail notes to the trusts
in connection with these issuances. The proceeds from the sale of the retail
notes were used to repay outstanding debt and to finance additional receivables.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
Exhibit
No. Document Description
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99 Press Release of Case Credit dated October 15, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CASE CREDIT CORPORATION
/s/ Kevin J. Hallagan
Dated: October 21, 1998 By: _____________________________________________
Kevin J. Hallagan
Vice President and Secretary
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INDEX TO EXHIBITS
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<CAPTION>
Exhibit
No. Document Description
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<S> <C>
99 Press release dated October 15, 1998 of Case Credit Corporation.
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EXHIBIT 99
PRESS RELEASE
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For more information, contact:
Sandra J. Lasch
414-636-6473
For Immediate Release
CASE CAPITAL CORPORATION REPORTS RECORD PORTFOLIO
AND 9 PERCENT INCOME GROWTH FOR CASE CREDIT CORPORATION
. Serviced portfolio grows to record $6.4 billion
. Net income up 9 percent to $25 million
. Originations increase 40 percent
. Diversified financing business increases significantly
Racine, Wisconsin (October 15, 1998)--Case Capital Corporation, the
financial services arm of Case Corporation, today announced that Case Credit
Corporation reported net income of $25 million for the third quarter of 1998, up
9 percent from $23 million in the comparable period last year. Revenues
increased 44 percent over the prior year to a record $108 million. These
improvements are attributed to higher financing income from strong growth in
receivables and leases. In addition, increases in net income were partially
offset by a higher tax rate.
For the first nine months of 1998, revenues increased 31 percent over the
prior year period to $264 million. Net income for the period was $62 million,
comparable to last year. Increases in financing income were offset by the impact
of Case Credit's asset-management strategy and a higher tax rate during the
first nine months of 1998.
Case Credit's serviced portfolio grew to a record $6.4 billion as of
September 30, 1998, a 30 percent increase year-over-year. Financing originations
increased 40 percent in the third quarter and 41 percent for the first nine
months, as compared to prior year periods. These increases reflect the impact of
Case Capital's strategy to grow and diversify Case Credit's financial services
business while continuing to serve Case dealers and customers worldwide.
-more-
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Diversified financing represented 29 percent of total retail originations during
the third quarter and 25 percent for the first nine months. Year-over-year,
diversified retail originations have increased nearly 200 percent.
"Case Credit's outstanding performance once again demonstrates the strength
of our financial services business," stated Ted R. French, Case Capital chairman
and Case president, financial services, and chief financial officer. "The
continued growth in our balance sheet and net income, despite weaker retail
demand in the agricultural sector, demonstrates that we are successfully
executing our strategy. We are well-positioned for leadership in the financial
services industry and remain confident in our ability to make a stable, growing
contribution to Case Corporation and its shareholders."
Case Credit announced in September that it has formed a strategic marketing
alliance with GMAC Commercial Mortgage Corporation to offer agricultural real
estate financing through the Case dealer network. This strategic alliance was
formed to provide Case customers with a one-stop shopping source for their
agricultural equipment and real estate financing needs.
"We are continuing our efforts to expand the scope of our financial
services business and strengthen our non-cyclical earnings base," said French.
"The strength of our portfolio reflects our success in managing growth and
diversification. We will maintain our superior portfolio quality as we pursue
new business opportunities and enter into strategic initiatives that support
sustainable, long-term earnings growth for Case Capital."
Case Capital Corporation, recently formed by Case Corporation to provide
broad-based financial services for the global marketplace, will soon encompass
Case Credit Corporation. Established in 1957, Case Credit provides financial
services to customers purchasing, leasing and insuring equipment through
established dealer networks located primarily in North America, Australia and
Europe. Based in Racine, Wisconsin, Case Credit services a $6.4 billion
portfolio of receivables and leases.
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