Commercial lender CIT declared its quarterly results. As expected the results were below par as lack of financing options has hurt the growth of the company. The company saw its earning plummet 59 percent. The company posted a bottom line or adjusted profit of $34 million, or 17 cents a share, for the period, down from $83 million, or 41 cents a share, a year earlier. The company was able to increase its business across all commercial segments to $3.3 billion, up 40% from the previous quarter and 70% from the fourth-quarter of 2010.
The company is emerging from chapter 11 bankruptcy and has also acknowledged that the company had makes mistakes in its financials the previous time around. “These errors decreased tangible book value per common share by 32 cents on a cumulative basis, which is reflected in the $42.35 TBV per share at Dec. 31,” the company said in a release. The company will be restating the results for 2009 after alleged fraud.
The auditors had witnessed massive errors involved about $68 million in refunds of unresolved credits that are owed to customers, mostly retailers. Out of the fraud around $66 million relates to credits from 2009 or earlier, and was recorded as a charge against 2009 income, the company said. Auditors and lenders have mentioned that new books will not affect the previous numbers drastically. The changes reduced tangible book value by 32 cents per share, the company said.
The shares rose 14 cents to close at $38.14. Concerned with the slow movement of the economy and lack of growth among key small and medium enterprises. We maintain a neutral outlook on the stock are current price levels