NASHVILLE, Tenn., April 25, 2017 /PRNewswire/ -- Cat Financial
reported first-quarter 2017 revenues of $662
million, an increase of $19
million, or 3 percent, compared with the first quarter of
2016. First-quarter 2017 profit was $115
million, a $15 million, or 15
percent, increase from the first quarter of 2016.
The increase in revenues was due to a $24
million favorable impact from higher average financing rates
and a $12 million favorable impact
from miscellaneous revenue items, partially offset by a
$17 million unfavorable impact from
lower average earning assets.
Profit before income taxes was $167
million for the first quarter of 2017, compared with
$145 million for the first quarter of
2016. The increase was primarily due to a $13 million decrease in provision for credit
losses and a $9 million favorable
impact from miscellaneous revenue items.
The provision for income taxes reflects an estimated annual tax
rate of 30 percent in the first quarter of both 2017 and 2016.
During the first quarter of 2017, retail new business volume was
$2.34 billion, an increase of
$47 million, or 2 percent, from the
first quarter of 2016. The increase was primarily related to higher
volume in Asia/Pacific and
North America, partially offset by
decreases in Caterpillar Power Finance and Latin America.
At the end of the first quarter of 2017, past dues were 2.64
percent, compared with 2.78 percent at the end of the first quarter
of 2016. Write-offs, net of recoveries, were $15 million for the first quarter of 2017,
compared with $31 million for the
first quarter of 2016.
As of March 31, 2017, the
allowance for credit losses totaled $346
million, or 1.28 percent of finance receivables, compared
with $340 million, or 1.21 percent of
finance receivables at March 31,
2016. The allowance for credit losses at year-end 2016 was
$343 million, or 1.29 percent of
finance receivables.
"Our portfolio and business performed well, reflecting a stable
portfolio and good operational execution," said Dave Walton, president of Cat Financial and vice
president with responsibility for the Financial Products Division
of Caterpillar Inc. "The global Cat Financial team delivered solid
results and we continue to be well-positioned to serve Caterpillar,
Cat dealers and customers 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:
FIRST-QUARTER 2017
VS. FIRST-QUARTER 2016
|
(ENDED MARCH
31)
|
(Millions of
dollars)
|
|
|
2017
|
|
2016
|
|
CHANGE
|
Revenues
|
$
|
662
|
|
$
|
643
|
|
3%
|
Profit Before Income
Taxes
|
$
|
167
|
|
$
|
145
|
|
15%
|
Profit
|
$
|
115
|
|
$
|
100
|
|
15%
|
Retail New Business
Volume
|
$
|
2,340
|
|
$
|
2,293
|
|
2%
|
Total
Assets
|
$
|
34,732
|
|
$
|
35,340
|
|
(2)%
|
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 filed on February 15,
2017 for the fiscal year ended December 31, 2016, which
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