In The Marketplace

Nassau Asset Management of Roslyn Heights, NY, has issued its NasTrac Quarterly Index (NQI), which indicates that repossessions of tractor-trailer trucks declined 70% in the third quarter (Q3) compared with the same time frame in 2003. In addition, repossessions of machine tools, a closely watched barometer of economic activity, dropped 72% in Q3, a finding that correlates with other indicators within the manufacturing industry. The report further showed:

• Repossessions of medical devices in Q3 declined nominally by 15%;
• Repossessions of printing presses were up 88% compared with Q3 2003, which may be partly due to consolidation taking place within the industry; and
• Repossessions of construction equipment increased by 57% compared with Q3 2003, the first time in 2004 that construction repos have risen compared with 2003. When comparing each of the three quarters to date in 2004, in fact, construction repos have actually declined or flattened.

The current NQI reports on the top five repossessed capital assets in Q3 2004, which include trucks/trailers, printing presses, medical devices, machine tools and construction equipment, according to Nassau's internal records on liquidations.

Siemens Financial Services, Inc. (SFS) of Iselin, NJ, has announced that it has expanded its lending capabilities in the areas of leasing and asset-based lending. SFS will expand its existing mid- to large-ticket equipment financing and asset-based lending facilities to customers throughout North America. In addition, SFS will expand its presence abroad by providing international financing and long-term forfeiting capabilities to customers across the European Union. SFS will expand into the global marketplace through a new suite of lending, leasing and long-term trade finance capabilities. The new offerings will be part of the company's Commercial Business Finance group, formerly called Capital Markets, and SFS in the US will hold global responsibilities for these new offerings. SFS also plans to significantly increase the size of its sales force supporting these new products. The company is also seeking loan and leasing portfolios to further expand its global presence.

Lease & Finance Consulting, LLC of Ridgefield, CT, is a newly created consulting advisory practice focused on servicing the financial services industry. It will provide leasing support and consulting services directly to the leasing industry and supports users of leasing products by providing advisory services. The management team is headed by Lisa Lersner, former President of Golden Eagle Leasing, Inc. More information can be found at www.leasefinanceconsulting.com.

American International Group, Inc. of New York has formed AIG Commercial Equipment Finance, Inc. (AIG CEF), a new equipment finance and leasing company headquartered in Plano, TX. AIG CEF, a member company of AIG, will provide equipment lending and leasing services to mid-size and large commercial enterprises throughout the United States, Canada and other selected international markets. William G. Farrell, Jr. and David B. Fate will serve as President and Executive Vice President, respectively. Both executives come to AIG CEF from Transamerica Equipment Financial Services, where Farrell served as President, overseeing all business segments, and Fate served as Executive Vice President in charge of all intermediary business ventures.

In a separate announcement, AIG CEF has also named Joseph F. Thompson as senior vice president ' Capital Markets. He will have management responsibility for the origination and syndication of all types of transactions, as well as the coordination of the marketing efforts of the company.

Key Equipment Finance of Cleveland and American Express Company of New York have announced the signing of a definitive agreement to acquire American Express Business Finance Corporation (AEBF), the equipment leasing unit of American Express' small business division. With a portfolio of approximately $1.5 billion, AEBF is a commercial finance company that provides capital for small and middle market businesses, principally in the healthcare, IT, office products and commercial vehicles/construction, and industrial segments. The transaction is expected to close in the fourth quarter, pending regulatory approval.

GE Commercial Finance of Danbury, CT, announced that it has reached an agreement to acquire the IT leasing business of Bay4 Capital, LLC, an independent information technology lessor. The agreement is expected to close in the fourth quarter of 2004. With this acquisition, GE Commercial Finance will be able to offer new and existing customers a variety of financing options to help them acquire a broad range of technology assets – including hardware and related software and services. The new business will be called GE Commercial Finance, Technology Finance and will be integrated into GE Commercial Finance, U.S. Equipment Financing.

National City Bank of Cincinnati announced that it has acquired Alpine Capital Corporation, an equipment leasing organization. Alpine Capital will continue to be managed by its founder, Michael Morris, who will report to Vince Rinaldi, president and CEO of the National City leasing entity, National City Commercial Capital. Alpine Capital is one of the largest worldwide lessors of VSAT small component satellite systems and other related ground satellite equipment. The majority of its business is dedicated to a private-label vendor-finance program with Hughes Network Systems. Alpine originates $50 million in domestic and $10 million in international leases annually. It will continue to be headquartered in Deerfield, Ill.

Caterpillar Inc. of Peoria, IL, has reported record sales and revenues of $7.65 billion for the third quarter and record third-quarter profit of $498 million, or $1.41 per share. Results for the nine months ended September 30 are the best in company history with sales and revenues of $21.68 billion and profit of $1.48 billion, or $4.19 per share. Third-quarter sales and revenues were $7.65 billion, up $2.10 billion or 38% compared to $5.55 billion in the third quarter 1 year ago. The increase in sales and revenues was driven by $1.83 billion of higher Machinery and Engines volume, $136 million of increased Price Realization, a $102 million favorable impact of Currency on sales due primarily to the strengthening euro and British pound and $41 million of higher Financial Products revenues. The company expects 2004 sales and revenues to be up about 30% and profit per share to be up 80 to 85% compared with 2003.

Nassau Asset Management of Roslyn Heights, NY, has issued its NasTrac Quarterly Index (NQI), which indicates that repossessions of tractor-trailer trucks declined 70% in the third quarter (Q3) compared with the same time frame in 2003. In addition, repossessions of machine tools, a closely watched barometer of economic activity, dropped 72% in Q3, a finding that correlates with other indicators within the manufacturing industry. The report further showed:

• Repossessions of medical devices in Q3 declined nominally by 15%;
• Repossessions of printing presses were up 88% compared with Q3 2003, which may be partly due to consolidation taking place within the industry; and
• Repossessions of construction equipment increased by 57% compared with Q3 2003, the first time in 2004 that construction repos have risen compared with 2003. When comparing each of the three quarters to date in 2004, in fact, construction repos have actually declined or flattened.

The current NQI reports on the top five repossessed capital assets in Q3 2004, which include trucks/trailers, printing presses, medical devices, machine tools and construction equipment, according to Nassau's internal records on liquidations.

Siemens Financial Services, Inc. (SFS) of Iselin, NJ, has announced that it has expanded its lending capabilities in the areas of leasing and asset-based lending. SFS will expand its existing mid- to large-ticket equipment financing and asset-based lending facilities to customers throughout North America. In addition, SFS will expand its presence abroad by providing international financing and long-term forfeiting capabilities to customers across the European Union. SFS will expand into the global marketplace through a new suite of lending, leasing and long-term trade finance capabilities. The new offerings will be part of the company's Commercial Business Finance group, formerly called Capital Markets, and SFS in the US will hold global responsibilities for these new offerings. SFS also plans to significantly increase the size of its sales force supporting these new products. The company is also seeking loan and leasing portfolios to further expand its global presence.

Lease & Finance Consulting, LLC of Ridgefield, CT, is a newly created consulting advisory practice focused on servicing the financial services industry. It will provide leasing support and consulting services directly to the leasing industry and supports users of leasing products by providing advisory services. The management team is headed by Lisa Lersner, former President of Golden Eagle Leasing, Inc. More information can be found at www.leasefinanceconsulting.com.

American International Group, Inc. of New York has formed AIG Commercial Equipment Finance, Inc. (AIG CEF), a new equipment finance and leasing company headquartered in Plano, TX. AIG CEF, a member company of AIG, will provide equipment lending and leasing services to mid-size and large commercial enterprises throughout the United States, Canada and other selected international markets. William G. Farrell, Jr. and David B. Fate will serve as President and Executive Vice President, respectively. Both executives come to AIG CEF from Transamerica Equipment Financial Services, where Farrell served as President, overseeing all business segments, and Fate served as Executive Vice President in charge of all intermediary business ventures.

In a separate announcement, AIG CEF has also named Joseph F. Thompson as senior vice president ' Capital Markets. He will have management responsibility for the origination and syndication of all types of transactions, as well as the coordination of the marketing efforts of the company.

Key Equipment Finance of Cleveland and American Express Company of New York have announced the signing of a definitive agreement to acquire American Express Business Finance Corporation (AEBF), the equipment leasing unit of American Express' small business division. With a portfolio of approximately $1.5 billion, AEBF is a commercial finance company that provides capital for small and middle market businesses, principally in the healthcare, IT, office products and commercial vehicles/construction, and industrial segments. The transaction is expected to close in the fourth quarter, pending regulatory approval.

GE Commercial Finance of Danbury, CT, announced that it has reached an agreement to acquire the IT leasing business of Bay4 Capital, LLC, an independent information technology lessor. The agreement is expected to close in the fourth quarter of 2004. With this acquisition, GE Commercial Finance will be able to offer new and existing customers a variety of financing options to help them acquire a broad range of technology assets – including hardware and related software and services. The new business will be called GE Commercial Finance, Technology Finance and will be integrated into GE Commercial Finance, U.S. Equipment Financing.

National City Bank of Cincinnati announced that it has acquired Alpine Capital Corporation, an equipment leasing organization. Alpine Capital will continue to be managed by its founder, Michael Morris, who will report to Vince Rinaldi, president and CEO of the National City leasing entity, National City Commercial Capital. Alpine Capital is one of the largest worldwide lessors of VSAT small component satellite systems and other related ground satellite equipment. The majority of its business is dedicated to a private-label vendor-finance program with Hughes Network Systems. Alpine originates $50 million in domestic and $10 million in international leases annually. It will continue to be headquartered in Deerfield, Ill.

Caterpillar Inc. of Peoria, IL, has reported record sales and revenues of $7.65 billion for the third quarter and record third-quarter profit of $498 million, or $1.41 per share. Results for the nine months ended September 30 are the best in company history with sales and revenues of $21.68 billion and profit of $1.48 billion, or $4.19 per share. Third-quarter sales and revenues were $7.65 billion, up $2.10 billion or 38% compared to $5.55 billion in the third quarter 1 year ago. The increase in sales and revenues was driven by $1.83 billion of higher Machinery and Engines volume, $136 million of increased Price Realization, a $102 million favorable impact of Currency on sales due primarily to the strengthening euro and British pound and $41 million of higher Financial Products revenues. The company expects 2004 sales and revenues to be up about 30% and profit per share to be up 80 to 85% compared with 2003.