CIT Group Inc., the commercial finance company trying to escape a cash squeeze, said it was unprofitable for a fourth straight quarter and cut its dividend after failing to staunch losses on home and student loans.
The first quarter's $249.7 million loss before preferred dividends, or $1.35 a share, compares with a profit of $208.1 million, or $1.01 fully diluted, in the same period a year earlier, according to a statement. The stock rose as much as 6.9 percent as CIT said it will return to profitability in future quarters.
Chief Executive Officer Jeffrey Peek cut 500 jobs and reduced the dividend 60 percent at CIT, the biggest independent lender to U.S. firms. He's selling units and trying to raise $7 billion to quell concerns about the New York-based firm's health after CIT drew on $7.3 billion of emergency credit last month. Analysts have said the company may be a takeover target.
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