Magazine

Table: CIT's Instant Recovery


CIT Group was solidly profitable before Tyco announced a buyout in March, 2001. But in the next two months, CIT swung sharply into the red--then came roaring back in June, after the deal closed and it was renamed Tyco Capital. Here's the story behind the turnabout:

CIT, Before the takeover

-- CIT's "other revenue" plunged to $25.9 million in April and May

-- Credit-loss provisions jumped to $148.1 million in April and May

-- CIT took a $54 million charge for acquisition costs

TOTAL NET LOSS: $78.8 MILLION

Tyco Capital, After Tyco moved in

-- "Other revenue" rose to $95.9 million in June

-- Provision for credit losses dropped to $18.6 million in June

-- No charges were taken for acquisition costs

TOTAL NET INCOME: $71.2 MILLION

Data: CIT Group Inc.


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