NASHVILLE, Tenn., Jan. 26, 2017 /CNW/ --
Full-Year 2016 vs. Full-Year 2015
Cat Financial reported revenues of $2.60
billion for 2016, a decrease of $78
million, or 3 percent, compared with 2015. Profit was
$384 million, a $76 million, or 17 percent, decrease from
2015.
The decrease in revenues was primarily due to a $66 million unfavorable impact from lower average
earning assets and a $43 million
unfavorable impact from returned or repossessed equipment,
partially offset by a $33 million
favorable impact from higher average financing rates.
Profit before income taxes was $561
million for 2016, compared with $619
million for 2015. The decrease was primarily due to a
$43 million unfavorable impact from
returned or repossessed equipment and a $30
million unfavorable impact from lower average earning
assets, partially offset by a $24
million decrease in general, operating and administrative
expenses.
The provision for income taxes reflects an annual tax rate of 30
percent for 2016, compared with 26 percent for 2015. The increase
in the annual tax rate is primarily due to a reduction in available
foreign tax credits and changes in the geographic mix of
profits.
Retail new business volume for 2016 was $10.91 billion, a decrease of $511 million, or 4 percent, from 2015. The
decrease was primarily related to lower volume across North America, marine and mining, partially
offset by an increase in Asia/Pacific and Europe.
At the end of 2016, past dues were 2.38 percent, compared with
2.14 percent at the end of 2015. The increase in past dues was
primarily driven by the European marine portfolio. Write-offs,
net of recoveries, were $123 million
for 2016, compared with $155 million
for 2015.
As of December 31, 2016, the
allowance for credit losses totaled $343
million, or 1.29 percent of net finance receivables,
compared with $338 million, or 1.22
percent of net finance receivables at year-end 2015.
Fourth-Quarter 2016 vs. Fourth-Quarter 2015
Cat Financial reported fourth-quarter 2016 revenues of
$642 million, a decrease of
$6 million, or 1 percent, compared
with the fourth quarter of 2015. Fourth-quarter 2016 profit was
$85 million, a $29 million, or 25 percent, decrease from the
fourth quarter of 2015.
The decrease in revenues was primarily due to a $19 million unfavorable impact from lower average
earning assets and a $13 million
unfavorable impact from returned or repossessed equipment,
partially offset by a $24 million
favorable impact from higher average financing rates.
Profit before income taxes was $122
million for the fourth quarter of 2016, compared with
$129 million for the fourth quarter
of 2015. The decrease was primarily due to a $13 million unfavorable impact from returned or
repossessed equipment, a $9 million
unfavorable impact from lower average earning assets and a
$9 million increase in provision for
credit losses. These unfavorable impacts were partially offset by a
decrease of $22 million in other
operating expenses primarily driven by the absence of employee
separation charges that were recorded in the prior year.
The provision for income taxes reflects an effective tax rate of
29 percent in the fourth quarter of 2016, compared with 12 percent
in the fourth quarter of 2015. The increase in the effective tax rate is primarily due to a
reduction in available foreign tax credits and changes in the
geographic mix of profits.
During the fourth quarter of 2016, retail new business volume
was $2.86 billion, a decrease of
$496 million, or 15 percent, from the
fourth quarter of 2015. The decrease was primarily related to lower
volume in North America and
Latin America.
"We are pleased with the overall performance of our business
during 2016, including continued strong portfolio health during the
year despite challenging market conditions in some of our key
segments," said Kent Adams,
president of Cat Financial and vice president with responsibility
for the Financial Products Division of Caterpillar Inc. "With our
ongoing focus on expanding our ability to serve customers globally
through financial services excellence, we remain well-positioned to
serve the needs of Caterpillar, Cat dealers and our growing
customer base worldwide."
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:
FOURTH-QUARTER
2016 VS. FOURTH-QUARTER 2015
|
(ENDED DECEMBER
31)
|
(Millions of
dollars)
|
|
|
2016
|
|
2015
|
|
CHANGE
|
Revenues
|
$
|
642
|
|
$
|
648
|
|
(1)%
|
Profit Before Income
Taxes
|
$
|
122
|
|
$
|
129
|
|
(5)%
|
Profit
|
$
|
85
|
|
$
|
114
|
|
(25)%
|
Retail New Business
Volume
|
$
|
2,862
|
|
$
|
3,358
|
|
(15)%
|
Total
Assets
|
$
|
33,615
|
|
$
|
33,867
|
|
(1)%
|
FULL-YEAR 2016 VS.
FULL-YEAR 2015
|
(ENDED DECEMBER
31)
|
(Millions of
dollars)
|
|
|
2016
|
|
2015
|
|
CHANGE
|
Revenues
|
$
|
2,595
|
|
$
|
2,673
|
|
(3)%
|
Profit Before Income
Taxes
|
$
|
561
|
|
$
|
619
|
|
(9)%
|
Profit
|
$
|
384
|
|
$
|
460
|
|
(17)%
|
Retail New Business
Volume
|
$
|
10,908
|
|
$
|
11,419
|
|
(4)%
|
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cat-financial-announces-2016-year-end-results-300396819.html
SOURCE Cat Financial