WESTBURY, NY - Repossessions and liquidations of trucking equipment and machine tools in the third quarter of 2009 declined as compared to similar figures from 2008, according to Nassau Asset Management's NasTrac Quarterly Index (NQI). The figures, culled from the company's activity reports for both repossessions and orderly liquidations, also indicated a rise in repossessions for both construction and printing equipment, offering mixed news on the health the American economy as it emerges from the recent recession.

Trucking repossessions, which have undergone a steady and continuous increase over the past year and a half, dropped by 44 percent in the latest NQI. Machine tool repossessions processed by Nassau declined by 55 percent in Q3 2009, as compared to the same period in 2008.

However, other sectors continued to report increased activity in the NQI. Construction repossessions and liquidations rose by 53 percent during the quarter and printing equipment repossessions increased by 82 percent, as compared to the same total last year.

"After two very difficult quarters to start the year, there have been some scattered signs of improvement in the general economy and in some of the most battered verticals of the equipment leasing sector," said Ed Castagna, president of Nassau Asset Management. "These numbers obviously offer a mixed message and it appears that the economy is showing some signs of life but many sectors have yet to take part in that growth."

Castagna continued, "We recommend to anyone who is in the process of liquidating or remarketing assets that they be quick and smart in their decisions. Equipment values in this market are changing daily. Sellers must be conscious of the current actual liquidation value of their equipment, and be ready and able to take the best offer given to them in full confidence. NOTE: Information based on Nassau Asset Management's markets only

Trucking Repossessions and Liquidations

The 44-percent drop in truck repossessions shows this sector may have stabilized and much of the excess of equipment has been drained from the market, ending the hysteria of the past few quarters in a sector that has seen an extraordinary amount of activity in the past few years.

The decline in recent repossessions in the trucking sector is likely due in part to the limited production of new vehicles. FTR Associates, an industry analyst firm, is forecasting a 47-percent decline in new Class 8 truck production this year.

The NQI data also reflects a mixed bag of news in trucking activity. The August 2009 Freight Transportation Services Index (TSI), which measures the month-to-month changes in freight shipments in ton-miles, rose 0.7 percent in August from its July level, a second consecutive monthly increase, according to the U.S. Department of Transportation.

In fact, the Freight TSI has now avoided a decline for four consecutive months for the first time since 2002, after a stretch of nine of the previous 12 months in which the index declined. However, the Freight TSI marked its lowest figure for August since August 1997 with a 10.9 percent decline from August 2008, the largest month-to-month decline in August in the 20 years for which the TSI is calculated.