EINDHOVEN, The Netherlands, March 15, 2011 /PRNewswire/ --
- Increases Credit Portfolio and Operating Income - Well-Positioned for the Future
De Lage Landen, a global provider of high-quality asset-based financing products to manufacturers and distributors of capital goods and end users, reported today a net profit of EUR201 million ($269 million) over 2010, an increase of 79% compared to 2009 (EUR112 million ($150 million)). The total credit portfolio increased 6% to EUR25.2 billion ($33.8 billion) from EUR23.7 billion ($31.8 billion). Operating income increased 15% to EUR1.18 billon ($1.58 billion) from EUR1.03 billion ($1.38 billion).
"We are back on track," says De Lage Landen CEO Ronald Slaats. "We started the year with ambitious targets, but we worked hard and we exceeded our expectations. Thanks to our focus on cost control and risk management, we were able to improve our profitability. I can proudly say that we have recovered from the crisis."
De Lage Landen now operates in 35 countries with over 5,250 FTEs. It is exploring opportunities in India.
Review
The Vendor Finance division grew portfolio as well as new business volume irrespective of economic challenges, and expanded into emerging markets. Existing partnerships were extended.
Consumer Finance in the Netherlands increased credit volume through the Rabobank channel, and new business volume through its online label, Freo. It also signed an agreement for the acquisition of a EUR200 million consumer credit portfolio.
Factoring's credit portfolio grew 28%. New business volume was at an all-time high.
De Lage Landen's subsidiary, Athlon Car Lease, benefited from the improving market for ex-lease cars.
Outlook
The aftermath of a worldwide economic crisis and a changing regulatory environment-most notably regarding lease accounting changes-combine to provide an unclear picture of the future. In the construction, transportation and industrial markets, recovery is expected to be slow. Healthcare and food and agriculture have been least impacted by the overall recession, with only modest drops in equipment sales. Office equipment, technology and car lease are expected to recover in line with the global economies.
"Against these circumstances, we are well-positioned for growth," says De Lage Landen CEO Ronald Slaats. "In the past five years, we invested in the extension of our business model through expanded product offerings, the broadening of our geographical presence, and the enhancement of our technical infrastructure. Now, our aim is to unlock the full potential of these investments by further connecting our business lines across the globe, creating stronger connections with all stakeholders as a result."
De Lage Landen will take up Rabobank Group's strategic priorities in international food and agriculture and all-finance in The Netherlands. It will also continue to treat sustainability as a business priority, recognizing a global market place that increasingly values ethical behavior and eco-friendly, innovative products.
About De Lage Landen
De Lage Landen, a fully owned subsidiary of Rabobank Group, specializes in asset-based financing programs for equipment manufacturers, dealers and distributors all over the world. Our programs cover our customers' total distribution chain, as well as the entire lease lifecycle. We offer customers a single source for leasing, administration, risk and asset management solutions. De Lage Landen's diversified solutions include car leasing in the European market and consumer finance and factoring in the Dutch home market.
Establishing a close and long-lasting relationship with our customers is at the heart of our company culture. This requires a genuine interest in and a thorough understanding of our customers' business needs and goals. We partner with our customers to tailor solutions and develop programs that support mutual growth and profitability.
We care not only about our customers, but also about the communities in which we operate. We strive to have a positive social and environmental impact through our products and the way we conduct business.
Financial Statement Policy
De Lage Landen International B.V. is exempt from publishing its financial statements in accordance with Article 403, Section 9, Book 2 of the Dutch Civil Code. The income statements and balance sheets are based on the financial information prepared for consolidation purposes of Rabobank Nederland.
Disclaimer
This press release is provided to you for information purposes only and no reliance should be placed on it by you or by any third party into whose possession it may fall. Recipients should conduct their own investigation and analysis of De Lage Landen, its assets and financial condition, and the information set out herein. Neither De Lage Landen nor any of its affiliates, officers or employees accepts any liability or responsibility for the accuracy or completeness of, nor makes any representation or warranty, expressed or implied, with respect to the information contained herein. The information provided in this press release does not confer any rights.
For more information, visit http://www.delagelanden.com
SOURCE De Lage Landen
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