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PRESS
RELEASES
Drop
in Repos Continued in Q1 2004
However,
Exceptions to the Rule, Recent Pick-Up in Activity May Signal
Changes in Q2, According to Nassau Asset Management
ROSLYN
HEIGHTS, NY., April 22, 2004-- Repossessions of most
types of equipment dropped in the first quarter of 2004
as they did throughout 2003, according to Nassau Asset Management's
NasTrac Quarterly Index (NQI). However, repossessions of
wood-working machinery increased during the same time frame.
Ed Castagna, Nassau's senior executive vice president, also
has noted a recent pick-up in repo activity that will be
interesting to track over the second quarter.
"Our
data shows continued improvements in the overall number
of equipment repossessions from businesses. However, we
have been very busy lately, perhaps due to the uneven economic
recovery of various industries," Castagna says. "For
example, while repossessions of construction equipment and
trucks are down compared with first quarter 2003, they have
increased significantly in the past few months since fourth
quarter 2003."
Nassau
Asset Management has tracked equipment values for several
decades as a function of its nationwide remarketing operation,
which recaptures and resells all types of assets including
construction equipment, printing presses, machine tools,
and buses. Recognizing the value its historic and current
data holds for the equipment leasing and finance industry,
the company in 2003 launched NQI, which reports on equipment
types generating the greatest volume of liquidations. Nassau
clients can obtain more detailed information as part of
the NQI service, including customized data on specific types
of equipment.
Castagna
says NQI gives equipment leasing and finance companies a
tool to help mitigate risk. It provides a snapshot of recent
recovery and sales activity, helping equipment leasing and
finance companies forecast current market conditions so
they can make decisions regarding their portfolios if they
are heavy in the types of assets experiencing the most repossessions
as tracked by NQI.
"Nassau's
NQI also can be used as one of several components to help
gauge the economic health of individual industry sectors,"
Castagna adds. "Viewed over time, NQI's quarterly data
on repossessions can be compared with data from the previous
year to help identify which industry sectors may be experiencing
financial downturns, upturns, or cyclical changes."
Top
Repossessions in 1Q 2004
The
current NQI reports on construction equipment, trucks/trailers,
medical devices, machine tools, and wood-working equipment.
These were the top five repossessed capital assets in the
first quarter (Q1) of 2004, according to Nassau's internal
records on liquidations.
Castagna
says the Q1 data, when compared with the same quarter a
year ago, shows there was a 27 percent decrease in repossessions
of construction equipment, and a 61 percent drop in repossessions
of trucks and trailers. Repossessions of medical devices
and machine tools plummeted 43 percent and 53 percent, respectively.
However, the wood-working sector suffered in Q1 2004. Repossessions
of woodworking equipment increased by 18 percent compared
with the same quarter last year.
Readers
should keep in mind that the assets NQI covers may change
from quarter to quarter since Nassau plans to feature only
the largest asset groups in its multimillion dollar portfolio.
Additionally, results must be viewed over several quarters
to establish reliable trends since all industries experience
cyclical changes.
To view
NQI charts on repossessions as they are available, please
visit the Web sites of equipment leasing and finance industry
trade journals or contact Nassau.
ABOUT NASSAU
Nassau
Asset Management of Roslyn Heights, NY, has been providing
full-service asset management, including asset recovery,
collections, remarketing, plant liquidations, and appraisals
for more than 25 years to the equipment leasing and finance
industry. For more information, please visit www.nasset.com
or call 1-800-4.NASSAU.
# # #
MEDIA
CONTACTS:
Edward
Castagna
Senior Executive Vice President
Nassau Asset Management
1-800.4.NASSAU, ext. 301
ecast@nasset.com
Carla Young Harrington
PR Agent for Nassau
540-899-3913
carla@crosslink.net
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