Tag Archives: CIT

J.C. Penney: CIT Cash Advances Still Flowing to Suppliers

By The Associated Press

SAN BRUNO, CA - FEBRUARY 28:  A customer leaves a JCPenney store on February 28, 2013 in San Bruno, California.  J.C. Penney Co. reported a 31.7 percent drop in fourth quarter earnings with a net loss of $552 million, or $2.51 per share compared with a loss of $87 million, or $0.41 one year ago. (Photo by Justin Sullivan/Getty Images)

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Justin Sullivan/Getty Images

PLANO, Texas — J.C. Penney says that CIT, the largest lender in the clothing industry, is still supporting deliveries from its suppliers. The department store operator also says it has ample liquidity to run its business.

Shares rose more than 7 percent in premarket trading Thursday.

On Wednesday, a New York Post report said that CIT Group Inc. (CIT) had stopped providing financial support to small and large suppliers selling to J.C. Penney stores — for now. The report said CIT made the decision after meeting with J.C. Penney officials to examine the company’s books.

J.C. Penney Co. (JCP) said Thursday that CIT assured it that the newspaper report is untrue.

CIT is what the industry calls a “factor,” which makes cash advances to suppliers based on the goods they sell to the merchant. If vendors and factors become wary of a store’s creditworthiness, the retailer may have to pay suppliers cash upfront for goods, which could be a huge drain on liquidity. If suppliers stop shipping goods, it can be a death knell for a retailer.

Plano, Texas-based J.C. Penney said that merchandise from CIT-supported suppliers currently makes up less than 4 percent of its overall inventory for the year.

J.C. Penney said that it still has the support of all of its key vendors, which are continuing shipments to the company. The retailer, which has 1,100 stores, anticipates closing the second quarter with about $1.5 billion in cash on its balance sheet.

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Shares climbed $1.09, or 7.5 percent, to $15.69 in premarket trading about two hours before the market open Thursday.

J.C. Penney is trying to reverse its fortunes after disastrous results under a failed transformation plan implemented by its former CEO Ron Johnson. Johnson was ousted in April after 17 months on the job. The board brought back former CEO Mike Ullman, who has reintroduced frequent sales and is bringing back key merchandise under store names like St. John’s Bay.

Analyst Deborah Weinswig of Citi Investment Research says J.C. Penney won’t see a recovery in its business until 2014. The analyst said in a client note that she’s been surprised that “quick fixes,” like bringing back coupons, hasn’t led to stronger sales and doesn’t think this will change in the near term. The analyst lowered the chain’s rating to “Sell” from “Neutral” and cut its price target to $11 from $20.

J.C. Penney doesn’t comment on analyst reports.

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Source: FULL ARTICLE at DailyFinance

CIT Employees Donate More Than 30 Tons of Food to NJ-Based Interfaith Food Pantry

By Business Wirevia The Motley Fool

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CIT Employees Donate More Than 30 Tons of Food to NJ-Based Interfaith Food Pantry

Neighbors Helping Neighbors

LIVINGSTON, N.J.–(BUSINESS WIRE)– CIT Group Inc.  (NYS: CIT) cit.com, a leading provider of financing and advisory services to small businesses and middle market companies, today announced that its Livingston-based employees have donated more than 30 tons (60,000 pounds) of food as part of its inaugural company-wide global initiative to fight hunger. The food will be donated to Morris Plains, NJ-based Interfaith Food Pantry and is expected to provide approximately 50,000 meals to families in New Jersey. This effort will be added to the 87 tons (174,000 pounds) of food and personal items previously donated by CIT‘s Jacksonville, Florida employees over the last seven years during their annual food drive. Building on this strong foundation of giving, CIT offices around the world will sponsor similar Employee Food Drives throughout 2013 in addition to continuing to sponsor local volunteer projects that support their neighbors and community organizations.

CIT Employees Donated More Than 30 Tons of Food For NJ-based Interfaith Food Pantry. (Photo: Business Wire)

“I am extremely proud of the overwhelming support and generous contributions of our employees who donated in excess of 30 tons of food – more than triple our initial food drive goal,” said John Thain, Chairman and CEO of CIT. “Volunteer groups and non-profit organizations such as New Jersey‘s Interfaith Food Pantry do a tremendous amount to support our communities. It’s important that we support their good work in an effort to further strengthen the fabric of the communities in which we live and work.”

Rosemary Gilmartin, Executive Director at New Jersey‘s Interfaith Food Pantry, said, “We’re grateful to CIT for their generous donation to our organization – which was sorely needed as our supply was perilously low. The demand has been incredible as the economy continues to struggle. While we receive wonderful support from the entire community, we have never seen a drive on this scale done by one company. It’s truly remarkable and we are extremely overjoyed to receive such great support from such an extraordinary team of people.”

Established in 1994, New Jersey‘s Interfaith Food Pantry was formed when a group from local houses of worship decided to address the growing issue of hunger by consolidating their food assistance programs. As a non-denominational, non-profit 501(c)(3) …read more
Source: FULL ARTICLE at DailyFinance

Boeing Dreamliner Woes Continues

By MarketNewsVideo Frustrated airlines have been seeking replacement aircraft for the troubled Boeing 787 (BA), still grounded after two battery fires earlier this year. Airplane leasing company CIT reports that there have been interest for planes such as the Boeing 767 and Airbus A330. In addition, some airlines have delayed …read more
Source: FULL ARTICLE at Forbes Markets

Top Analyst Upgrades and Downgrades (BIDU, BBVA, BBBY, CIT, CLWR, DHI, HMY, HGG, KBH, M, MRVL, PHM, RYL, SD, SWC, TGT, TOL, UNH, WSM, ZNGA)

By 24/7 Wall St.

Bull and BearThese are some of this Tuesday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Baidu Inc. (NASDAQ: BIDU) cut to Market Perform at Raymond James and cut to Hold at Stifel Nicolaus.

Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) raised to Neutral at UBS.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) raised to Buy at Citigroup.

CIT Group Inc. (NYSE: CIT) cut to Neutral at Nomura.

Clearwire Corp. (NASDAQ: CLWR) cut to Underperform at D.A. Davidson.

D.R. Horton…

Top Analyst Upgrades and Downgrades (BIDU, BBVA, BBBY, CIT, CLWR, DHI, HMY, HGG, KBH, M, MRVL, PHM, RYL, SD, SWC, TGT, TOL, UNH, WSM, ZNGA) originally appeared on DailyFinance.com on 2013-02-05T08:25:00Z.

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Source: FULL ARTICLE at DailyFinance