August 1, 2023
Cat Financial Announces Second-Quarter 2023 Results
Cat Financial reported second-quarter 2023 revenues of $793 million, an increase of $125 million, or 19%, compared with $668 million in the second quarter of 2022. Second-quarter 2023 profit was $150 million, an increase of $7 million, or 5%, compared with $143 million in the second quarter of 2022. The increase in revenues was primarily due to a $120 million favorable impact from higher average financing rates.
Second-quarter 2023 profit before income taxes was $205 million, an increase of $6 million, or 3%, compared with $199 million in the second quarter of 2022. The increase was mainly due to a $44 million favorable impact from a lower provision for credit losses and a $12 million increase in net yield on average earning assets, partially offset by unfavorable currency impacts of $27 million and an $18 million increase in general, operating and administrative expenses.
The provision for income taxes reflected an estimated annual tax rate of 26% for both the second quarter of 2023 and 2022.
During the second quarter of 2023, retail new business volume was $3.15 billion, an increase of $57 million, or 2%, compared with $3.10 billion in the second quarter of 2022. The increase was primarily driven by higher volume in Mining, partially offset by lower volume in EAME and Latin America.
At the end of the second quarter of 2023, past dues at Cat Financial were 2.15%, compared with 2.19% at the end of the second quarter of 2022. Write-offs, net of recoveries, were $8 million for the second quarter of 2023, compared with less than $1 million for the second quarter of 2022. As of June 30, 2023, Cat Financial's allowance for credit losses totaled $320 million, or 1.15% of finance receivables, compared with $348 million, or 1.27% of finance receivables at March 31, 2023. The allowance for credit losses at year-end 2022 was $346 million, or 1.29% of finance receivables.
"Cat Financial's second-quarter results reflected strong portfolio performance,” said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The global Cat Financial team remains focused on executing our strategy and providing financial services solutions to Caterpillar customers and dealers worldwide.”
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in Nashville, Tennessee, Cat Financial serves customers globally with offices and subsidiaries located throughout North and South America, Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat Financial.
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