FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of a Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month(s) of: March 25, 1998
NEWCOURT CREDIT GROUP INC.
BCE Place, 181 Bay Street
Suite 3500, P.O. Box 827
Toronto, Ontario
Canada, M5J 2T3
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F / / Form 40-F /X/
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.]
Yes / / No /X/
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b)]
82-
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, thereunto duly authorized.
Date: March 26,1998 NEWCOURT CREDIT GROUP INC.
By: John P. Stevenson
Corporate Secretary
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For immediate release
Trading Symbol: NCT Contact: John Sadler
Exchange Listings: Toronto Executive Vice President
Montreal Corporate Affairs
New York (416) 594-2400
Newcourt outlines strategies for global quality growth
at annual shareholders meeting
Toronto, March 25, 1998 - Following a string of business accomplishments
last year coupled with impressive financial results, Newcourt Credit Group's
shareholders today learned that the Company plans to go head-to-head with
its global competitors in a year slated for accelerated organic expansion.
At its Annual General Meeting today in Toronto, Newcourt shareholders
heard how the Company's strong financial performance last year positions it
as a worldwide force in asset-based lending. Newcourt's portfolio of owned
and managed assets grew 73 percent in 1997 to a record $11.4 billion. New
loan originations totaled $8.9 billion, an increase of 54 percent. Operating
income for the year grew by 86 percent, from $64 million in 1996 to $119
million in 1997. And, investors who held Newcourt stock at the beginning of
1997 enjoyed a return of 103 percent by the end of the year.
Beyond reporting strong financial results, Newcourt's Chief Executive
Officer, Steven K. Hudson, outlined in his address how Newcourt will
continue to thrive and meet expectations for quality growth. "Thanks to the
Company's enhanced capabilities and the global platform we are now
utilizing to serve our customers, we expect to increase our new business
volumes from $18 billion in 1997 to $25 billion in 1998, an increase of 40
percent."
Mr. Hudson went on to identify four key strategies that Newcourt will
employ to deliver these results.
Integration. The first strategy is to fully implement the Company's integration
plan, following Newcourt's five acquisitions in 1997. Already, Newcourt has
created a new comprehensive business plan to drive earnings growth and
asset quality, expanded key North American relationships internationally and
implemented annual cost reductions of $45 million.
Proven Business Model. "Second, we must remain focused on our proven
business model of long-term vendor alliances. This starts by increasing the
depth and breadth of services we bring to existing customers. With our
current geographic and product scope, this is more effective and less costly
than acquisitive growth." Hudson also noted that this approach targets a
decrease in delivery costs while allowing the Company to capitalize on
extensive industry and sector knowledge, and continue to maintain its high
asset quality.
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Leverage International Capabilities. Capitalizing on Newcourt's capability to
provide customers with unparalleled global solutions, the Company will
implement a third strategy - "to leverage off Newcourt's international
franchise to seize domestic growth. There are other Lucent and Dells out
there waiting for an alternative. It's time to take the game to our
competitors."
Entrepreneurial Culture. Hudson went on to note that "the fourth strategy is
to maintain and encourage one of Newcourt's most powerful competitive
tools - the performance-driven entrepreneurial culture that got us to where we
are today."
To best implement these strategies and seize the opportunities at hand, the
Company presented its new operational structure of three businesses - each
with its own president and mandate: David McKerroll is President of
Newcourt Capital, the corporate finance business; Bradley Nullmeyer is
President of Newcourt Financial, the commercial finance business; and Dan
Jauernig is President of Newcourt Services, responsible for the Company's
growth, control and support functions, in addition to being the Company's
Chief Financial Officer. Each of these businesses will be branded as separate
entities and will use that branding as their primary calling card throughout
the world.
New Corporate Identity
In addition to the new business brands, Newcourt unveiled a new corporate
identity at the meeting that will act as a new global symbol of what Newcourt
is all about - a perfect balance of strategy and strength. The identity,
which is comprised of the knight on a chessboard and a stylized shield,
embodies the mission of the new company - to deliver strategic solutions to
customers from the strength of a global leader in asset finance.
In other business, shareholders elected Takumi Shibata to the Company's
Board of Directors. Shibata brings valuable international perspective and
experience to the board from his position as President of Nomura
International plc, an international investment bank based in London.
The combination of Newcourt Credit Group and AT&T Capital has created
one of the world's leading sources of asset-based financing serving the
corporate, commercial and institutional markets with owned and managed
assets of $31 billion and a global distribution capability in 24 countries.
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