Cat Financial Announces Second-Quarter 2013 Results

July 24, 2013

Caterpillar contact:
Jim Dugan
Global Government & Corporate Affairs
(309) 494-4100 Office
(309) 360-7311 Mobile
Dugan_Jim@cat.com

FOR IMMEDIATE RELEASE

Cat Financial reported second-quarter 2013 revenues of $694 million, an increase of $26 million, or 4 percent, compared with the second quarter of 2012. Second-quarter 2013 profit after tax was $111 million, a $7 million, or 7 percent, increase from the second quarter of 2012.

The increase in revenues was due to a $74 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $40 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and an $8 million unfavorable impact from returned or repossessed equipment.

Profit before income taxes was $158 million for the second quarter of 2013, compared with $144 million for the second quarter of 2012. The increase was primarily due to a $31 million favorable impact from higher average earning assets and a $7 million improvement in net yield on average earning assets. These increases were partially offset by a $22 million unfavorable impact from currency gains and losses and an $8 million unfavorable impact from returned or repossessed equipment.

The provision for income taxes reflects an estimated annual tax rate of 27 percent for the second quarters of both 2013 and 2012.

New retail financing in the second quarter of 2013 was $3.39 billion, a decrease of $452 million, or 12 percent, from the second quarter of 2012. The decrease was primarily within the Asia/Pacific and Latin America operating segments, partially offset by growth in the North America operating segment.

At the end of the second quarter of 2013, past dues were 2.64 percent compared with 2.52 percent at the end of the first quarter of 2013, 2.26 percent at the end of 2012 and 3.35 percent at the end of the second quarter of 2012. Although past dues have improved when compared with the second quarter of 2012, the increase from the end of 2012 and from the first quarter of 2013 reflects higher past dues in the Latin American, Asia/Pacific, and European portfolios. Write-offs, net of recoveries, were $27 million for the second quarter of 2013, up from $16 million for the second quarter of 2012.

As of June 30, 2013, Cat Financial's allowance for credit losses totaled $422 million or 1.46 percent of net finance receivables, compared with $426 million or 1.49 percent of net finance receivables at year-end 2012. The allowance for credit losses as of June 30, 2012, was $393 million or 1.47 percent of net finance receivables.

"Cat Financial's business continues to perform well as a result of continued growth in our earning assets." said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "The global Cat Financial team remains focused on helping Cat customers and dealers succeed through financial services excellence.”

For over 30 years, Cat Financial, a wholly-owned subsidiary of Caterpillar Inc., has been providing financial service excellence to Cat 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 the Americas, Asia, Australia and Europe, with headquarters in Nashville, Tennessee.

Cat Financial 2Q2013 Statistical Highlights