The New York Times

 

NUMBER ONE            WEDNESDAY JULY 15, 1964            PRICE SIXPENCE

         


Control Data Australia Memories compiled by Brian Membrey

Head Office


Chairman Backs Spinoff Of Commercial Credit

New York Times, 16 September, 1986

In his spare time, Joseph D. Minutilli, chairman and chief executive of the Commercial Credit Company, renovates real estate properties. But he is best noted for the attempted restoration of the Control Data Corporation subsidiary.

Yet, almost as soon as the foundation was laid, Control Data said Friday that it would spin off all but 20 percent of the Baltimore-based company as part of a plan to pay down debt and enhance its computer business.

Control Data said that Sanford I. Weill, the former chairman of Shearson Lehman Brothers Inc. and former president of the American Express Company, would assume the title of chairman and chief executive of Commercial Credit. Mr. Minutilli, a 58-year-old Columbus, Ohio, native, will become an adviser and a director on the company's new board.

''This has been a decision which I have participated in,'' Mr. Minutilli said in a telephone interview. ''Although it was not my decision to make, I fully support it.'' Mr. Minutilli said that a majority of his time would now be spent insuring a smooth transition and other assigned tasks.

Commercial Credit, one of the nation's largest consumer finance companies, operates 650 consumer and commercial lending offices in 40 states.

Control Data, the troubled computer maker, tried to sell Commercial Credit last year. But the Minneapolis-based company abandoned the plan in June because it was unable to get the nearly $1 billion that the company was reportedly seeking. Last year, Commercial Credit had a loss of $4.8 million on revenues of more than $1 billion.

Since then, Commercial Credit has restructured and pared down debt through asset sales. In the second quarter, Commercial Credit reported net earnings of $12.5 million, on revenues of $232.8 million, compared with earnings of $11.2 million, on revenues of $296.7 million, in the comparable quarter last year.

Mr. Minutilli joined Commercial Credit in 1951 as a field representative for its principal sales finance and loan subsidiary. Thirteen years later, he moved to Baltimore to direct electronic data processing operations before becoming senior vice president in 1973. He assumed the title of chief executive in 1983, and chairman and president in 1984.

A graduate of Ohio Wesleyan University, Mr. Minutilli said he also plans to spend more time in community activity and on his farm in Pennsylvania.