AmeriCredit restates loss, plans job cuts
FORT WORTH, Texas, Feb 12 (Reuters) - AmeriCredit Corp. <ACF.N>, an auto loan provider, on Wednesday said it revised its net loss for its December quarter and set forth a restructuring plan that will cut 20 percent of its work force.
AmeriCredit, which targets people with poor credit, said the net loss for its fiscal second quarter ended Dec. 31 was now $44.7 million, or 29 cents a share. That compared with a net loss of $27.6 million, or 18 cents a share, reported on Jan. 16.
The revision reflects a non-cash charge of $27.8 million related to expected delays of FSA-insured trust distributions. AmeriCredit, which has watched its stock plunge over the past year, said it would cut 20 percent of employees by the end of February, about 1,000 jobs, resulting in a $40 to $50 million charge.
AmeriCredit said it will cut its loan origination volume to $750 million per quarter by June. The company said it still expects annualized credit losses of 7 percent in the first half of calendar year 2003.
It also said it expected to report net income between $60 to $70 million, or 43 cents to 50 cents a share, for the 12 months ending June 30, and net income of $100 to $125 million, or 63 to 79 cents a share, for the 12 months ended Dec. 31.
02/12/03 16:45 ET |
