October 23, 2014
Cat Financial Announces Third-Quarter 2014 Results
Cat Financial reported third-quarter 2014 revenues of $743 million, an increase of $44 million, or 6 percent, compared with the third quarter of 2013. Third-quarter 2014 profit after tax was $148 million, a $31 million, or 26 percent, increase from the third quarter of 2013.
The increase in revenues was primarily due to a $37 million favorable impact from higher average earning assets.
Profit before income taxes was $197 million for the third quarter of 2014, compared with $164 million for the third quarter of 2013. The increase was primarily due to a $23 million improvement on net yield on average earning assets and a $16 million favorable impact from higher average earning assets.
The provision for income taxes reflects an estimated annual tax rate of 26 percent in the third quarter of 2014, compared with 27 percent in the third quarter of 2013. The decrease in rate is primarily due to changes in the geographic mix of pre-tax profits.
During the third quarter of 2014, retail new business volume was $3.13 billion, a decrease of $38 million, or 1 percent, from the third quarter of 2013. The decrease was primarily related to lower volume in Mining, partially offset by increases in Cat equipment sales in North America.
At the end of the third quarter of 2014, past dues were 2.81 percent, compared with 2.77 percent at the end of the second quarter of 2014, 2.47 percent at the end of 2013 and 2.51 percent at the end of the third quarter of 2013. The increase reflects higher past dues in the Latin American, Asia/Pacific and European portfolios. Write-offs, net of recoveries, were $16 million for the third quarter of 2014, compared with $58 million for the third quarter of 2013.
As of September 30, 2014, Cat Financial's allowance for credit losses totaled $405 million or 1.37 percent of net finance receivables, compared with $395 million or 1.30 percent of net finance receivables as of June 30, 2014, $387 million or 1.33 percent of net finance receivables at year-end 2013 and $412 million or 1.43 percent of net finance receivables as of September 30, 2013.
“Continued growth and strong yield performance in our earning asset base and the solid performance of our portfolio have resulted in another good quarter for Cat Financial,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc. “We continue to be well-positioned to serve Caterpillar, Cat dealers and our customers worldwide.”
These results contain immaterial corrections to prior period amounts previously reported and disclosed.
For over 30 years, Cat Financial, a wholly owned subsidiary of Caterpillar Inc., has been providing financial service excellence to customers. The company offers a wide range of financing alternatives to customers and Cat® dealers for Cat machinery and engines, Solar® gas turbines and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout North and South America, Asia, Australia and Europe, with its headquarters in Nashville, Tennessee.
Caterpillar contact: Rachel Potts, 309-675-6892 or 309-573-3444, Potts_Rachel_A@cat.com
