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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) January 26, 1999
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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.)
233 Lake Avenue, 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 January 26, 1999, Case Credit Corporation ("Case Credit") announced its
unaudited financial results for the year ended December 31, 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 December 31, 1998 and for the three
months and the year ended December 31, 1998.
SUMMARY INCOME STATEMENT DATA
(Millions)
(Unaudited)
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<CAPTION>
Three Months
Ended Year Ended
December 31 December 31
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Revenues
Interest income and other $ 113 $ 71 $ 377 $ 272
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Total 113 71 377 272
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Costs and Expenses
Selling, general and administrative 23 7 56 29
Interest expense 40 26 143 98
Other, net 15 7 47 23
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Total 78 40 246 150
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Income before taxes 35 31 131 122
Income tax provision 12 11 46 40
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Net Income $ 23 $ 20 $ 85 $ 82
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Form 8-K page 2
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SUMMARY BALANCE SHEET DATA
(Millions)
(Unaudited)
<TABLE>
<CAPTION>
December 31
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1998 1997
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<S> <C> <C>
Assets
Cash and cash equivalents $ 35 $ 67
Accounts, notes receivable and other - net 2,527 2,045
Property, plant and equipment - net 3 3
Equipment on operating leases - net 468 179
Other assets 227 68
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Total $3,260 $2,362
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Liabilities and Equity
Current maturities of long-term debt $ -- $ --
Short-term debt 550 1,147
Accounts payable and other accrued liabilities 87 94
Long-term debt 2,108 735
Other liabilities 56 29
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Total Liabilities 2,801 2,005
Equity 459 357
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Total $3,260 $2,362
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</TABLE>
Form 8-K page 3
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
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<CAPTION>
Exhibit
No. Document Description
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<S> <C>
99 Press Release of Case Credit dated January 26, 1999.
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Form 8-K page 4
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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
Dated: February 3, 1999 By: /s/ Kevin J. Hallagan
_______________________________________
Kevin J. Hallagan
Vice President and Secretary
Form 8-K page 5
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
No. Document Description
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<S> <C>
99 Press release dated January 26, 1999 of Case Credit Corporation.
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Form 8-K page 6
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EXHIBIT 99
PRESS RELEASE
The following is issued in conjunction with Case Corporation's 1998 fourth
quarter results:
For more information, contact:
Sandra J. Lasch (414) 636-6473
For Immediate Release
CASE CAPITAL CORPORATION REPORTS RECORD PORTFOLIO
AND 15 PERCENT INCOME GROWTH
. Serviced portfolio grows to a record $6.8 billion
. Net income up 15 percent for the quarter to $23 million
. Originations increase 31 percent for the year
. Diversified financing business increases significantly
Racine, Wisconsin (January 26, 1999) -- Case Capital Corporation, the
financial services arm of Case Corporation, today announced net income of $23
million for the fourth quarter, up 15 percent from $20 million in the comparable
period last year. Revenues increased 59 percent over the prior year to a record
$113 million. The improvements in net income are attributed to higher financing
income from strong growth in receivables and leases. These were partially
offset by increased selling, general and administrative expenses and additional
provisions for loan losses to support the company's growth and portfolio
diversification initiatives.
For the year, revenues increased 39 percent over the prior period to $377
million. Net income for the period was $85 million, compared to $82 million in
the prior period. The increase in net income for the year is attributable to
higher financing income associated with the
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growth in receivables and improved margins resulting from the declining interest
rate environment. These improvements were partially offset by increased selling,
general and administrative expenses and loan loss reserves, as well as a higher
year-over-year tax rate.
Case Capital's serviced portfolio grew to a record $6.8 billion as of
December 31, 1998, a 30 percent increase year-over-year. Financing originations
increased 14 percent in the fourth quarter and 31 percent for the year, as
compared to prior year periods. Diversified financing represented 33 percent of
total retail originations during the quarter and 29 percent for the year. These
increases reflect the success of Case Capital's strategy to grow and diversify
its business.
"This was another landmark year for our financial services business,"
stated Ted R. French, Case president, financial services, and chief financial
officer. "Our outstanding performance for both the quarter and the year once
again demonstrates the strength of our business. We are well positioned for
continued success in the financial services industry."
During the year, the company completed a series of strategic moves designed
to further grow and diversify its financial services business. Case Capital,
formed in June, serves as a broad-based financial services company for the
global marketplace. It encompasses Case Credit, which has been providing
financial services through the Case dealer network since 1957, and Soris
Financial, launched in late 1998 to serve Case Capital's diversified client base
in the agricultural, construction and other related industries.
The company also formed an insurance company to serve as a platform for
expanding its insurance business, and announced that it is offering business
insurance for U.S. equipment dealers through an alliance with Universal
Underwriters Group, a subsidiary of Zurich Insurance Company. In addition, Case
Credit Corporation established a strategic marketing alliance with
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GMAC Commercial Mortgage Corporation that offers agricultural real estate
financing through the Case dealer network.
"We are experiencing success in every sector of our business, and are
confident that we have the people, programs and processes in place to ensure a
steady, growing contribution to Case Corporation and its shareholders. The
continued growth in our balance sheet and net income, despite weaker retail
demand in the agricultural equipment sector, demonstrates that we are
successfully executing our strategy," said Andrew E. Graves, president, Case
Capital.
"We continue to take steps, including increasing our on-balance-sheet
assets by nearly $1 billion and aggressively investing in support services, to
maintain our superior portfolio quality as we pursue new business opportunities
and support sustainable, long-term earnings growth for Case Capital," Graves
stated.
Case Capital Corporation, a wholly owned subsidiary of Case Corporation,
provides broad-based financial services for the global marketplace. Case
Capital serves customers purchasing, leasing and insuring products through Case
Credit Corporation and Soris Financial. Established in 1957, Case Credit markets
its products through Case Corporation's established dealer networks in North
America, Australia and Europe. Soris, introduced in 1998, offers products
through diverse dealer networks located in North America. Based in Racine,
Wisconsin, Case Capital services a $6.8 billion portfolio of receivables and
leases.
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