CIT Group Inc.(NYSE:CIT) posted a wider loss than expected because of an increase in its spending for repayment of high cost debt compared to the same period last year.
The commercial lender’s loss for the latest quarter was $304.9 million or $1.50 a share. In the year ago period, the loss had been $32.8 million or 16 cents a share. Analysts had expected a loss of only $1.23 a share for the period ended September 30.
This loss includes $471 million used for debt refinancing. In the last year, the company had spent only $169 million for refinancing its debts.
Will CIT Rebound After The Slump? Find Out Here
Excluding this item, the pretax income for the quarter has fallen slightly. While last year it was $176 million, this year it is $170 million. The company has now fully paid off its restructuring related debt.
"We achieved several strategic milestones this quarter that will lower our funding costs and better position CIT for future profitability," said John Thain, chairman and CEO of the New York-based company.
Shares of CIT tumbled 6.77% to $37.30.
3M Co(NYSE:MMM) has declared its results for the third quarter. While the net income has met analysts’ expectations, the problems in the economy have forced the company to cut its outlook for the year 2012.
In the latest quarter, the maker of scotch tapes posted a net income of $1.16 billion or $1.65 a share, up from the $1.01 billion or $1.52 a share last year, in line with Street estimates. However, the sales estimate was not met. Revenue fell 9 percent to $7.53 billion.
For the full year, the company expects its earnings to be in the range of $6.27 and $6.35 a share, down from its earlier forecast of $6.35 to $6.50 a share. Analysts had expected $6.40 a share.
Shares of the company fell 3.3 percent to $89.50.