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Non-Tech : Household International (NYSE:HI) -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (1)	7/9/2000 11:36:25 AM
From: ztect	Read Replies (1) \| Respond to of 3

Household International profits jump 16 percent By Melissa Wahl Tribune Staff Writer April 19, 2000 Household International Inc., the Prospect Heights-based consumer finance company, reported a 16 percent gain in net income for the first quarter. Household's earnings of $372.9 million, or 78 cents per diluted share, beat analysts' expectations by a penny per share, and the company's stock price rose 25 cents Wednesday to close at $39.93. Officials at Household, which specializes in lending to people with spotty credit histories, say earnings have been helped by a less strenuous competitive environment, fewer consumer bankruptcies, and new initiatives for growth. Household has benefited more than some of its competitors from the nationwide downturn in consumer bankruptcies, said Chief Executive Officer William Aldinger. That's because it has invested heavily in technology and employees that together keep close track of customers' needs and financial situations. "We can anticipate whose account is likely to go bad and when, and what to do about it," Aldinger said. The company's data-mining efforts also help it target customers more effectively and give them the right products, he said. In addition to improving its existing business, Household continues to expand. During the first quarter, the company acquired over $2 billion in home equity receivables, 97 branch offices and 900 employees from the consumer finance area of Bank One Corp. Household also launched a new GM credit-card program that is expected to attract even more people to the popular card that lets consumers earn points toward the purchase of a new car. To further boost growth, Household increased its marketing expenses by 50 percent in the first quarter. That and more spending on e-commerce initiatives led to an overall operating expense increase of 23 percent, to $783.5 million. chicagotribune.com