Cat Financial Announces Third-Quarter 2013 Results
October 23, 2013
Caterpillar contact:
Jim Dugan
Global Government & Corporate Affairs
(309) 494-4100 (Office)
Dugan_Jim@cat.com
FOR IMMEDIATE RELEASE
Cat Financial reported third-quarter 2013 revenues of $698 million, an increase of $20 million, or 3 percent, compared with the third quarter of 2012. Third-quarter 2013 profit after tax was $118 million, a $9 million, or 8 percent, increase from the third quarter of 2012.
The increase in revenues was primarily due to a $40 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $26 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases.
Profit before income taxes was $165 million for the third quarter of 2013, compared with $153 million for the third quarter of 2012. The increase was primarily due to an $18 million favorable impact from higher average earning assets.
The provision for income taxes reflects an estimated annual tax rate of 27 percent for the third quarters of both 2013 and 2012.
New retail financing in the third quarter of 2013 was $3.17 billion, a decrease of $42 million, or 1 percent, from the third quarter of 2012. New retail financing decreased across all operating segments with the exception of North America, which increased.
At the end of the third quarter of 2013, past dues were 2.45 percent, compared with 2.64 percent at the end of the second quarter of 2013, 2.26 percent at the end of 2012 and 2.80 percent at the end of the third quarter of 2012. Write-offs, net of recoveries, were $58 million for the third quarter of 2013, up from $29 million for the third quarter of 2012. The increase in write-offs was primarily related to Cat Financial's European marine portfolio and was previously provided for in the allowance for credit losses.
As of September 30, 2013, Cat Financial's allowance for credit losses totaled $404 million or 1.40 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 September 30, 2012, was $404 million or 1.47 percent of net finance receivables.
"Cat Financial’s steady growth in earning assets and strong portfolio performance, combined with our diversified funding platform, continues to demonstrate our ability to deliver reliable earnings," said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “We continue to be well-positioned to serve Caterpillar, Cat dealers and our customers world-wide.”
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.