IBM Credit Corporation Reports 1998 Second-Quarter Results
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North Castle, New York (July 20, 1998) – IBM Credit Corporation today reported second-quarter 1998 net earnings of $71.6 million, an increase of 4 percent, compared with $68.6 million for the same 1997 period. The return on average equity was 17.1 percent, compared with 20.0 percent in the second quarter of 1997.
New financing originations for commercial and government customers acquiring computer hardware and other information technology products and services in the second quarter of 1998 decreased 3 percent to $1.53 billion, compared with $1.57 billion in the second quarter of 1997. New financing originations providing distribution channel partners with working capital for inventory and accounts receivable in the second quarter of 1998 decreased by 16 percent to $3.07 billion, compared with $3.67 billion for the same 1997 period.
At June 30, 1998, total assets were $15.7 billion, compared with $16.6 billion at December 31, 1997, a decrease of 5 percent. Retained earnings at June 30, 1998, were $1.33 billion, compared with $1.21 billion at December 31, 1997, an increase of 10 percent.
For the first half of 1998, net earnings were $147.3 million, compared with $147.8 million for the same period in 1997. For the first half of 1998, financing originated for commercial and government customers decreased by 1 percent to $2.88 billion, compared with $2.90 billion for the first half of 1997. For the first half of 1998, working capital financing originated for distribution channel partners decreased by 8 percent to $6.27 billion, compared with $6.79 billion for the same 1997 period.
Source: IBM