CIT posts $1.03 billion third-quarter loss from continuing operations

By Caroline Salls

Pittsburgh, Nov. 16 - CIT Group Inc. posted a $1.033 billion loss from continuing operations for the quarter ended Sept. 30 on $556.6 million of interest income, according to a 10-Q filed Monday with the Securities and Exchange Commission.

The figures showed a decline from a $301.1 million loss from continuing operations reported for the quarter ended Sept. 30, 2008 on $907.7 million in interest income.

The net loss attributable to common stockholders for the three months ended Sept. 30 was $1.075 billion, widening from a $317.3 million net loss attributable to common stockholders for the three months ended Sept. 30, 2008.

Meanwhile, the company posted a $2.994 billion net loss from continuing operations for the nine months ended Sept. 30 on $1.811 billion of interest income, compared with a $493.9 million loss from continuing operations for the nine months ended Sept. 30, 2008 on $2.814 billion in interest income.

The net loss attributable to common stockholders for the first three quarters of this year was $3.157 billion, widening from a $2.659 billion net loss attributable to common stockholders for the first three quarters of 2008.

CIT had $4.907 billion of cash and cash equivalents at Sept. 30, down from $6.521 billion at Sept. 30, 2008.

According to the 10-Q, negative economic conditions and company performance have adversely affected CIT's liquidity position and operating results, and the company has reported net losses since the second quarter of 2007 because of deteriorating economic conditions and credit quality issues within CIT's portfolio.

In addition, CIT said its liquidity and funding strategy have been adversely affected by the ongoing stress in the financial markets and downgrades in the company's credit ratings.

CIT is a New York-based provider of financing to small businesses and middle market companies. The company filed for bankruptcy on Nov. 1 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-16565.

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