NASHVILLE, Tenn., Jan. 25, 2018 /PRNewswire/ --
Full-Year 2017 vs. Full-Year 2016
Cat Financial reported revenues of $2.69
billion for 2017, an increase of $94
million, or 4 percent, compared with 2016. Profit was
$586 million, a $202 million, or 53 percent, increase from
2016.
The increase in revenues was primarily due to a $61 million favorable impact from higher average
financing rates and a $48 million
favorable impact from lending activity with Caterpillar, partially
offset by a $29 million unfavorable
impact from lower average earning assets.
Profit before income taxes was $590
million for 2017, compared with $561
million for 2016. The increase was primarily due to a
$33 million increase in net yield on
average earning assets and a $30
million favorable impact from lending activity with
Caterpillar, partially offset by a $38
million increase in general, operating and administrative
expenses primarily due to higher incentive compensation.
The provision for income taxes reflects an annual tax rate of
negative 1 percent for 2017, compared with 30 percent for 2016. The
provision for income taxes for 2017 includes a net benefit of
$151 million due to the enactment of
U.S. tax reform legislation on December 22,
2017. The provisionally estimated net benefit includes a
$334 million write-down of net
deferred tax liabilities to reflect the reduction in the U.S.
corporate tax rate from 35 percent to 21 percent beginning
January 1, 2018, partially offset by
the cost of a mandatory deemed repatriation of non-U.S. earnings.
The decrease in the annual tax rate is primarily due to this net
benefit, an increase in available foreign tax credits and changes
in the geographic mix of profits.
Retail new business volume for 2017 was $11.22 billion, an increase of $316 million, or 3 percent, from 2016. The
increase was primarily driven by higher volume in Asia/Pacific, partially offset by decreases in
Latin America and North America.
At the end of 2017, past dues were 2.78 percent, compared with
2.38 percent at the end of 2016. Write-offs, net of recoveries,
were $114 million for 2017, compared
with $123 million for 2016.
As of December 31, 2017, the
allowance for credit losses totaled $365
million, or 1.33 percent of net finance receivables,
compared with $343 million, or 1.29
percent of net finance receivables at year-end 2016.
Fourth-Quarter 2017 vs. Fourth-Quarter 2016
Cat Financial reported fourth-quarter 2017 revenues of
$678 million, an increase of
$36 million, or 6 percent, compared
with the fourth quarter of 2016. Fourth-quarter 2017 profit was
$271 million, a $186 million, or 219 percent, increase from the
fourth quarter of 2016.
The increase in revenues was primarily due to a $12 million favorable impact from higher average
earning assets, a $9 million
favorable impact from higher average financing rates and a
$9 million favorable impact from
lending activity with Caterpillar.
Profit before income taxes was $133
million for the fourth quarter of 2017, compared with
$122 million for the fourth quarter
of 2016. The increase was primarily due to a $16 million increase in net yield on average
earning assets, a $7 million
favorable impact from returned or repossessed equipment, a
$5 million favorable impact from
higher average earning assets and a $4
million favorable impact from lending activity with
Caterpillar. These favorable impacts were partially offset by an
$11 million increase in provision for
credit losses and an $11 million
increase in general, operating and administrative expenses
primarily due to higher incentive compensation.
The provision for income taxes reflects an effective tax rate of
negative 107 percent in the fourth quarter of 2017, compared with
29 percent in the fourth quarter of 2016. The provision for income
taxes in the fourth quarter of 2017 includes a net benefit of
$151 million due to the enactment of
U.S. tax reform legislation on December 22,
2017. The provisionally estimated net benefit includes a
$334 million write-down of net
deferred tax liabilities to reflect the reduction in the U.S.
corporate tax rate from 35 percent to 21 percent beginning
January 1, 2018, partially offset by
the cost of a mandatory deemed repatriation of non-U.S. earnings.
The decrease in the effective tax rate is primarily due to this net
benefit, an increase in available foreign tax credits and changes
in the geographic mix of profits.
During the fourth quarter of 2017, retail new business volume
was $3.42 billion, an increase of
$553 million, or 19 percent, from the
fourth quarter of 2016. The increase was primarily driven by higher
volume in Asia/Pacific,
Europe and North America.
"We are pleased with the overall performance of our business
during 2017, including continued good portfolio health and
operational execution during the year," said Dave Walton, 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
solutions, 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, Europe, Africa and the Middle East, with its headquarters in
Nashville, Tennessee.
STATISTICAL HIGHLIGHTS:
FOURTH-QUARTER
2017 VS. FOURTH-QUARTER 2016 (ENDED DECEMBER
31) (Millions of dollars)
|
|
|
|
|
|
2017
|
2016
|
CHANGE
|
Revenues
|
$
|
678
|
|
$
|
642
|
|
6%
|
Profit Before Income
Taxes
|
$
|
133
|
|
$
|
122
|
|
9%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
271
|
|
$
|
85
|
|
219%
|
Retail New Business
Volume
|
$
|
3,415
|
|
$
|
2,862
|
|
19%
|
Total
Assets
|
$
|
33,160
|
|
$
|
33,615
|
|
(1)%
|
|
|
FULL-YEAR 2017 VS.
FULL-YEAR 2016 (ENDED DECEMBER 31) (Millions of
dollars)
|
|
|
|
|
|
2017
|
2016
|
CHANGE
|
Revenues
|
$
|
2,689
|
|
$
|
2,595
|
|
4%
|
Profit Before Income
Taxes
|
$
|
590
|
|
$
|
561
|
|
5%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
586
|
|
$
|
384
|
|
53%
|
Retail New Business
Volume
|
$
|
11,224
|
|
$
|
10,908
|
|
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.
View original
content:http://www.prnewswire.com/news-releases/cat-financial-announces-2017-year-end-results-300588141.html
SOURCE Cat Financial