CIT Sees $900M Quarterly Loss; Shares Fall

CIT Sees $900M Quarterly Loss; Shares Fall

CIT shares fell in after-hours trading after the commercial lender said it expects to report a fourth-quarter loss of $900 million and a loss of $4 billion for the year.

CIT, in a regulatory filing with the Securities and Exchange Commission, said the loss for the year is "expected to be essentially offset by the impact of reorganization," primarily the cancelation of debt.

CIT, which entered bankruptcy in November 2009 and re-emerged on Dec. 10, said the annual results include a $692 million goodwill and intangible asset impairment charge, increased provisions for credit losses and reduced net interest revenue. That compares with a 2008 loss of $2.9 billion, which includes a $2.2 billion loss from a discontinued operation resulting from the sale of the company's home-lending business.

CIT was expected to issue its results on Monday but said they would be delayed until March 16 because the company didn't have enough time since it emerged from bankruptcy to get them done.

In after-hours trading Monday, CIT shares fell 21 cents to $36.34, after ending the regular trading session higher at $36.55.

Reported by Joseph Woelfel in New York.

11:59 PM

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