AmeriCredit dips into the red, drops forecast
In its managed portfolio, 31-60 day delinquency rates jumped to 6.8% from 4.7% in the June quarter (they were up marginally to 6.7% from year-earlier levels). Annualized net charge-offs (as a %age of average receivables) rose to 6.9% of managed receivables from 5.8% a year earlier. Finally, the company said it will earn just $170 million to $195 million in the fiscal year that ends in June. That's down sharply from a previous forecast of $295 million to $320 million. Said the firm's CEO Dan Berce:
"The December quarter was challenging on many fronts, with weaker credit performance and uncertainty in the capital markets. As a result, we have revised our operating plans to align our loan volume with available capital resources ... Over the next several months, we will bring our originations infrastructure and overhead into alignment with our revised originations target."