Financial: IBM Credit Corporation 1998 Results - Company Financial Information

Edge: Work-Group Computing Report, Jan 25, 1999

IBM Credit Corporation Thursday reported 1998 net earnings of $308.8 million, an increase of 9 percent compared with $283.9 million in 1997. "More and more, our customers are appreciating the value and uniqueness of IBM's ability to provide hardware, software, services and financing from a single source," said Joseph C.

Lane, president, IBM Credit Corporation and general manager, IBM Global Financing. "As part of IBM Global Financing with worldwide assets greater than $40 billion, IBM Credit Corporation continues to provide attractive rates and terms and conditions on competitive financing, as well as structured financial solutions in special situations. Our financial strength, as demonstrated by 1998's results, is a powerful advantage for IBM's customers and Business Partners when we work together with them to achieve mutual success." New customer financing originations for commercial and government institutions acquiring information technology products and services rose 3 percent to $7.2 billion in 1998, compared with $7.0 billion in 1997. New commercial financing originations to distribution channel partners decreased 5 percent to $14.2 billion in 1998, compared with $15.0 billion for the same 1997 period. At December 31, 1998, total assets were $16.4 billion, compared with $16.6 billion at December 31, 1997, a decrease of 1 percent. Retained earnings at December 31, 1998, were $1.4 billion compared with $1.2 billion at December 31, 1997, an increase of 17 percent. The return on average equity was 17.2 percent in 1998, compared with 18.6 percent in 1997. In the fourth quarter of 1998, net earnings were $81.5 million, an increase of 11 percent from 1997's $73.7 million. Financing originated for commercial and government customers in the fourth quarter of 1998 was $2.7 billion, an increase of 17 percent compared with the same 1997 period. For the fourth quarter of 1998, commercial financing for distribution channel partners was $4.2 billion, a 2 percent decrease compared with the same 1997 period. IBM Credit Corporation in the United States, and the IBM Global Financing organizations worldwide, offer businesses of all sizes leasing and financing for technology acquired from IBM or remarketers. IBM Credit and the IBM Global Financing organizations also offer customers in more than 40 countries a broad array of asset management services and provide remarketers with commercial financing. FMI: www.financing.ibm.com