Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  CIT Group Inc.    CIT

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CIT Group Inc. : CIT Equipment Financing Study Finds Demand for Capital Goods

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/27/2012 | 02:35pm CET

  • 82% of Executives Have Made at Least One Capital Goods Acquisition of Significant Value in the Past Year
  • 78% Intend to Acquire Capital Goods Within the Next 6 to 18 Months
  • 62% Say Vendor Financing Plays an Important Role in Their Lease Vs. Buy Decisions

Despite continued economic uncertainty, more than four out of five (82%) middle market executives have made at least one capital goods acquisition of significant value in the past year, and more than three-quarters (78%) say they plan to make one capital goods acquisition of significant value within the next six to 18 months.

Vince Belcastro, Managing Director and head of CIT Capital Equipment Finance (Photo: Business Wire)

Vince Belcastro, Managing Director and head of CIT Capital Equipment Finance (Photo: Business Wire)

These are some of the findings in the research study, U.S. Capital Goods and Equipment Financing Outlook: A Focus on Essential Acquisitions, (cit.com/equipmentfinancingstudy) released by CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies and Forbes Insights. This study is the latest research report from the CIT Outlook Series of exclusive industry studies focused on the perspectives of C-suite middle market executives.

The study gathered the views of 279 middle market executives on their capital goods decision making process and their outlook for equipment financing.

"Our study found that, despite general economic uncertainties, more than a third of executives reported their business need was simply too strong to delay their equipment purchase," said Ron Arrington, Global President of CIT Vendor Finance. "Executives also indicated that customer demand made such investments mandatory, or pointed to emerging opportunities that required new equipment. And as they seek to acquire new equipment, nearly two-thirds said the availability of vendor financing plays an important role in their decision making process."

Vince Belcastro, Managing Director and head of CIT Capital Equipment Finance, said, "Executives overwhelmingly indicated their intent to acquire capital goods over the next six to 18 months. For buyers, this could present an opportunity to negotiate a good deal on assets that can go a long way toward improving efficiency or perhaps growing top-line revenues."

Key Findings from the Report:

  • WHEN MAKING A PURCHASE, CASH IS KING: As executives consider the purchase of capital goods, 54% indicate they would use cash; 45% cited bank credit lines; 32% said balance sheet financing; and 27% would use asset-based financing. In providing a reason for making a purchase now, rather than delay it, more than a third of executives (37%) said that the business need was simply too strong, 31% indicated that business opportunities required new equipment, and 30% reported that customer demand made such investments mandatory.
  • SEVERAL FACTORS IMPACT LEASE-VERSUS-BUY DECISIONS: When it comes to lease versus buy decisions, executives typically consider a range of factors, including the expected impact on cash flow (74%), the cost of capital (65%), the return on the capital (60%), depreciation (57%), maintenance (57%), and taxes (53%).
  • AVAILABILITY OF VENDOR FINANCING KEY: Whether in the form of a lease or a loan, nearly two-thirds of executives (62%) said the availability of vendor financing plays either an important (37%) or a very important (25%) role when deciding to acquire capital goods. Additionally, more than three out of five executives (64%) say they have chosen one or more vendors based on their ability to provide financing and 47% have ruled out one or more vendors based on their inability to offer financing.
  • A FOCUS ON EFFICIENCY GAINS: While many companies remain focused on cutting costs, some are getting leaner by buying new capital goods that deliver efficiency gains. For 31% of those who made an acquisition in the past year report that the capital good delivered efficiency gains.

Individuals interested in receiving corporate news releases can register at cit.com/newsalerts or subscribe to the RSS feed at cit.com/rssfeed.

EDITOR'S NOTE: Complimentary copies of the study are available at cit.com/equipmentfinancingstudy. In addition, individuals can view and listen to executive interviews from CIT's award-winning CIT Executive Insights Video and Podcast Series at cit.com/executiveinsights.

About the Report

The insights and commentary found in this report are derived from both a survey instrument and personal interviews. The survey was completed by 279 executives from middle market companies with annual revenue between $10 million and $1 billion. Industries represented include industrial/manufacturing (19%); communications (16%); technology (15%); office equipment (15%); logistics and trucking (12%); energy, mining and construction (12%); and healthcare (11%).

About Forbes Insights

Forbes Insights is the strategic research practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights' research covers a wide range of vital business issues, including talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets. forbes.com/insights

About CIT Vendor Finance

CIT Vendor Finance is a leader in developing business solutions for small businesses and middle market companies for the acquisition of equipment and value-added services. It creates tailored equipment financing and leasing programs for manufacturers, distributors, and product resellers across industries that are designed to help them increase sales. Through these programs, it provides equipment financing and value-added services, from invoicing to asset disposition, to meet its customers' needs. cit.com/vendorfinance

CIT Capital Equipment Finance

CIT Capital Equipment Finance is a leading provider of equipment financing solutions for middle market companies in a wide range of industries. Its experienced sales and underwriting professionals work with companies to structure transactions that consider unique requirements and industry characteristics. CIT designs specific solutions that take into consideration business cycles, seasonal needs, specialized equipment requirements, and other factors to provide sophisticated solutions that add value to its customers' businesses. cit.com/equipmentfinance

About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $34 billion in financing and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. CIT also operates CIT Bank (Member FDIC), BankOnCIT.com, its primary bank subsidiary, which offers a suite of online savings options designed to help customers achieve a range of financial goals. cit.com

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50324172&lang=en

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Director of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
Vice President, Media Relations
Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause, 212-771-9650
Executive Vice President
Ken.Brause@cit.com
or
Barbara Callahan, 973-740-5058
Senior Vice President
Barbara.Callahan@cit.com
or
FORBES INSIGHTS:
Debbie Weathers, 212-366-8848
Senior Director of Communications
dweathers@forbes.com


© Business Wire 2012
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CIT GROUP INC.
01/23 CIT : To Announce Fourth Quarter And Full Year 2016 Financial Results On Tuesday..
01/19DJCIT : Steven Mnuchin, Donald Trump's Treasury Pick, to Address IndyMac Questions..
01/18 CIT GROUP INC : Other Events (form 8-K)
01/18 CIT : Declares Quarterly Dividend
01/12 PARTNERS REAL ESTATE INVESTMENT TRUS : Canyon Partners Real Estate Launches Cany..
01/05 CIT : Serves As Co-Arranger For $65 Million Acquisition Financing For Four Seaso..
01/04 CIT : Canyon Partners Real Estate Launches Canyon Multifamily Impact Fund III in..
2016 CIT GROUP INC. (NYSE : CIT) Files An 8-K Entry into a Material Definitive Agreem..
2016 CIT GROUP INC. (NYSE : CIT) Files An 8-K Other Events
2016 CIT GROUP INC : Entry into a Material Definitive Agreement, Financial Statements..
More news
Sector news : Banks - NEC
01:58pDJHSBC : to Cut 62 UK Branches this Year; 180 Jobs May Be Cut
01:51p ITALIAN BANK INTESA CONSIDERS BID FO : sources
01:25p HSBC : to close 62 branches in Britain, resulting in 180 job losses
11:45aDJWELLS FARGO : At Wells Fargo, Bank Branches Were Tipped Off to Inspections
11:10a BT slump weighs on European, UK indexes; Generali rallies
More sector news : Banks - NEC
News from SeekingAlpha
01/18 CIT declares $0.15 dividend
01/03 The Best 29 Stocks For 2017
2016 Don't ring the register on bank stocks yet - Oppenheimer
2016 28 Stocks For December 2016
2016 BMO downgrades several financials on post-Trump "overshoot"
Advertisement
Financials ($)
Sales 2016 2 509 M
EBIT 2016 1 054 M
Net income 2016 457 M
Debt 2016 -
Yield 2016 1,44%
P/E ratio 2016 18,30
P/E ratio 2017 12,15
Capi. / Sales 2016 3,36x
Capi. / Sales 2017 3,52x
Capitalization 8 438 M
More Financials
Chart CIT GROUP INC.
Duration : Period :
CIT Group Inc. Technical Analysis Chart | CIT | US1255818015 | 4-Traders
Full-screen chart
Technical analysis trends CIT GROUP INC.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 14
Average target price 43,6 $
Spread / Average Target 4,4%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Ellen Rose Alemany Chairman & Chief Executive Officer
Denise M. Menelly Executive VP, Head-Technology & Operations
Carol Hayles Chief Financial Officer & Executive Vice President
Marianne Miller Parrs Independent Director
William M. Freeman Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CIT GROUP INC.-2.16%8 438
JPMORGAN CHASE & CO.-2.99%299 537
WELLS FARGO & CO-1.56%272 460
INDUSTRIAL AND COML BA..2.49%231 116
BANK OF AMERICA CORP2.08%226 787
BANK OF CHINA LIMITED2.33%188 758
More Results