NASHVILLE, Tenn., Oct. 24, 2017 /CNW/ -- Cat Financial reported
third-quarter 2017 revenues of $673
million, an increase of $22
million, or 3 percent, compared with the third quarter of
2016. Third-quarter 2017 profit was $86
million, an $11 million, or 11
percent, decrease from the third quarter of 2016.
The increase in revenues was primarily due to a $15 million favorable impact from higher average
financing rates and a $14 million
favorable impact from lending activity with Caterpillar, partially
offset by a $6 million unfavorable
impact from lower average earning assets.
Profit before income taxes was $126
million for the third quarter of 2017, compared with
$146 million for the third quarter of
2016. The decrease was primarily due to a $19 million increase in provision for credit
losses and a $16 million increase in
general, operating and administrative expenses primarily due to
higher incentive compensation. These unfavorable impacts were
partially offset by a $9 million
favorable impact from lending activity with Caterpillar and an
$8 million increase in net yield on
average earning assets.
The provision for income taxes reflects an estimated annual tax
rate of 30 percent in the third quarter of 2017, compared with 31
percent in the third quarter of 2016.
During the third quarter of 2017, retail new business volume was
$2.78 billion, an increase of
$83 million, or 3 percent, from the
third quarter of 2016. The increase was primarily related to higher
volume in Asia/Pacific and Mining,
partially offset by decreases in Latin
America and Caterpillar Power Finance.
At the end of the third quarter of 2017, past dues were 2.73
percent, compared with 2.77 percent at the end of the third quarter
of 2016. Write-offs, net of recoveries, were $47 million for the third quarter of 2017,
compared with $29 million for the
third quarter of 2016. The increase in write-offs, net of
recoveries, was primarily due to the Latin America and marine portfolios.
As of September 30, 2017, the
allowance for credit losses totaled $343
million, or 1.27 percent of finance receivables, compared
with $346 million, or 1.28 percent of
finance receivables at September 30,
2016. The allowance for credit losses at year-end 2016 was
$343 million, or 1.29 percent of
finance receivables.
"Cat Financial's portfolio and business continues to perform
well. We believe customer risk exposure is well managed, with a
broad distribution of portfolio exposure across our global customer
base," said Dave Walton, 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 2017
VS. THIRD-QUARTER 2016
|
(ENDED SEPTEMBER
30)
|
(Millions of
dollars)
|
|
|
2017
|
|
2016
|
|
CHANGE
|
Revenues
|
$
|
673
|
|
$
|
651
|
|
3%
|
Profit Before Income
Taxes
|
$
|
126
|
|
$
|
146
|
|
(14)%
|
Profit
|
$
|
86
|
|
$
|
97
|
|
(11)%
|
Retail New Business
Volume
|
$
|
2,777
|
|
$
|
2,694
|
|
3%
|
Total
Assets
|
$
|
33,683
|
|
$
|
34,341
|
|
(2)%
|
|
NINE-MONTHS 2017
VS. NINE-MONTHS 2016
|
(ENDED SEPTEMBER
30)
|
(Millions of
dollars)
|
|
|
2017
|
|
2016
|
|
CHANGE
|
Revenues
|
$
|
2,011
|
|
$
|
1,953
|
|
3%
|
Profit Before Income
Taxes
|
$
|
457
|
|
$
|
439
|
|
4%
|
Profit
|
$
|
315
|
|
$
|
299
|
|
5%
|
Retail New Business
Volume
|
$
|
7,809
|
|
$
|
8,046
|
|
(3)%
|
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,
disruptions in the global financial and credit markets and changes
in laws, 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 with the Securities and Exchange Commission for the
fiscal year ended December 31, 2016 and similar sections in
our subsequent quarterly report on Form 10-Q, 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