agreed to sell a portfolio of leased assets to
and expects the deal to generate about $220 million in revenue and $120 million in operating profit for the fourth quarter.
The sale is part of an agreement in which CIT will provide equipment financing and leasing services to Agilent customers through a new unit called Agilent Financial Services.
Agilent, which makes test and measurement systems, along with semiconductor and optical components, also expects the deal to add $250 million to $300 million in fiscal 2001 revenue and between $125 million and $150 million in fiscal 2001 operating profit.
In addition, the company estimated that the change in revenue recognition for new-order originations will result in between $150 million and $200 million in additional net revenue in fiscal 2001. Additional operating profits will be between $75 million and $100 million in 2001 as a result of the change in revenue recognition.
Shares of Agilent were recently down 25 cents, or 0.5%, to $44.50, while CIT shares were up 38 cents, or 2.7%, to $13.94.