NASHVILLE, Tenn., Oct. 25, 2016 /CNW/ -- Cat Financial
reported third-quarter 2016 revenues of $651
million, a decrease of $2
million, compared with the third quarter of 2015.
Third-quarter 2016 profit was $97
million, a $12 million, or 11
percent, decrease from the third quarter of 2015.
The slight decrease in revenues includes a $10 million unfavorable impact from returned or
repossessed equipment and a $9
million unfavorable impact from lower average earning
assets, offset by a $19 million
favorable impact from higher average financing rates.
Profit before income taxes was $146
million for the third quarter of 2016, compared with
$153 million for the third quarter of
2015. The decrease was primarily due to a $10 million unfavorable impact from returned or
repossessed equipment and a $7
million increase in provision for credit losses, partially
offset by a $7 million decrease in
general, operating and administrative expenses.
The provision for income taxes reflects an estimated annual tax
rate of 31 percent in the third quarter of 2016, compared with 29
percent in the third quarter of 2015. The increase in the estimated
annual tax rate is primarily due to changes in the geographic mix
of profits.
During the third quarter of 2016, retail new business volume was
$2.69 billion, a decrease of
$161 million, or 6 percent, from the
third quarter of 2015. The decrease was related to lower volume,
primarily in North America.
At the end of the third quarter of 2016, past dues were 2.77
percent, compared with 2.68 percent at the end of the third quarter
of 2015. Write-offs, net of recoveries, were $29 million for the third quarter of 2016,
compared with $69 million for the
third quarter of 2015. The decrease in write-offs, net of
recoveries, was due to the absence of large write-offs that
occurred in the third quarter of 2015 in the mining and marine
portfolios.
As of September 30, 2016, the
allowance for credit losses totaled $346
million, or 1.28 percent of net finance receivables,
compared with $348 million, or 1.26
percent of net finance receivables at September 30, 2015. The allowance for credit
losses at year-end 2015 was $338
million, or 1.22 percent of net finance receivables.
"Cat Financial's portfolio continues to perform well despite
challenging market conditions in some of our key segments. We
believe customer risk exposure is well managed, with a broad
distribution of portfolio exposure across our global customer
base," said Kent Adams, president of
Cat Financial and vice president with responsibility for the
Financial Products Division of Caterpillar Inc. "Cat Financial
remains well positioned to serve Caterpillar customers and dealers
worldwide through financial services excellence."
For over 35 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.
STATISTICAL HIGHLIGHTS:
THIRD-QUARTER 2016
VS. THIRD-QUARTER 2015
|
(ENDED SEPTEMBER
30)
|
(Millions of
dollars)
|
|
|
2016
|
|
2015
|
|
CHANGE
|
Revenues
|
$
|
651
|
|
$
|
653
|
|
—%
|
Profit Before Income
Taxes
|
$
|
146
|
|
$
|
153
|
|
(5)%
|
Profit
|
$
|
97
|
|
$
|
109
|
|
(11)%
|
Retail New Business
Volume
|
$
|
2,694
|
|
$
|
2,855
|
|
(6)%
|
Total
Assets
|
$
|
34,341
|
|
$
|
33,478
|
|
3%
|
NINE-MONTHS 2016
VS. NINE-MONTHS 2015
|
(ENDED SEPTEMBER
30)
|
(Millions of
dollars)
|
|
|
2016
|
|
2015
|
|
CHANGE
|
Revenues
|
$
|
1,953
|
|
|
$
|
2,025
|
|
|
(4)%
|
Profit Before Income
Taxes
|
$
|
439
|
|
|
$
|
490
|
|
|
(10)%
|
Profit
|
$
|
299
|
|
|
$
|
346
|
|
|
(14)%
|
Retail New Business
Volume
|
$
|
8,046
|
|
|
$
|
8,061
|
|
|
—%
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained in this earnings release may be
considered "forward-looking statements" as that term is defined in
the Private Securities Litigation Reform Act of 1995. These
statements may relate to future events or our future financial
performance, which may involve known and unknown risks and
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievement to be materially
different from those expressed or implied by any forward-looking
statements. From time to time, we may also provide forward-looking
statements in oral presentations to the public or in other
materials we issue to the public. Forward-looking statements give
current expectations or forecasts of future events about the
company. You may identify these statements by the fact that they do
not relate to historical or current facts and may use words such as
"believes," "expects," "estimates," "anticipates," "will,"
"should," "plan," "project," "intend," "could" and similar words or
phrases. These statements are only predictions. Actual events or
results may differ materially due to factors that affect
international businesses, including changes in economic conditions
and disruptions in the global financial and credit markets, and
changes in laws and regulations and political stability, as well as
factors specific to Cat Financial and the markets we serve,
including the market's acceptance of our products and services, the
creditworthiness of our customers, interest rate and currency rate
fluctuations and estimated residual values of leased equipment.
These risk factors may not be exhaustive. We operate in a
continually changing business environment, and new risk factors
emerge from time to time. We cannot predict these new risk factors,
nor can we assess the impact, if any, of these new risk factors on
our businesses or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
projected in any forward-looking statements. Accordingly,
forward-looking statements should not be relied upon as a
prediction of actual results. Moreover, we do not assume
responsibility for the accuracy and completeness of those
statements. All of the forward-looking statements are qualified in
their entirety by reference to the factors discussed under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our annual
report on Form 10-K for the fiscal year ended December 31,
2015 and similar sections in our subsequent quarterly reports on
Form 10-Q, that describe risks and factors that could cause results
to differ materially from those projected in the forward-looking
statements. Cat Financial undertakes no obligation to publicly
update forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Cat Financial