NASHVILLE, Tenn., April 24, 2019 /CNW/ -- Cat Financial
reported first-quarter 2019 revenues of $736
million, an increase of $46
million, or 7%, compared with the first quarter of 2018.
First-quarter 2019 profit was $98
million, a $7 million, or 8%,
increase from the first quarter of 2018.
The increase in revenues was primarily due to a $33 million favorable impact from higher average
financing rates and a $19 million
favorable impact from higher average earning assets, partially
offset by an $8 million unfavorable
impact from returned or repossessed equipment.
Profit before income taxes was $142
million for the first quarter of 2019, compared with
$124 million for the first quarter of
2018. The increase was primarily due to a $14 million increase in net yield on average
earning assets, a $14 million
decrease in provision for credit losses and an $8 million favorable impact from higher average
earning assets. These favorable impacts were partially offset by a
$9 million increase in general,
operating and administrative expenses and an $8 million unfavorable impact from returned or
repossessed equipment.
The provision for income taxes reflects an estimated annual tax
rate of 27% in the first quarter of 2019, compared with 23% in the
first quarter of 2018. The increase in the estimated annual tax
rate is primarily due to changes in the geographic mix of
profits.
During the first quarter of 2019, retail new business volume was
$2.35 billion, a decrease of
$190 million, or 7%, from the first
quarter of 2018. The decrease was primarily driven by lower volume
in North America and Asia/Pacific.
At the end of the first quarter of 2019, past dues were 3.61%,
compared with 3.17% at the end of the first quarter of 2018. The
increase in past dues was primarily driven by Cat Power Finance,
concentrated in the marine portfolio. Write-offs, net of
recoveries, were $30 million for the
first quarter of both 2019 and 2018. As of March 31, 2019, the allowance for credit losses
totaled $534 million, or 1.89% of
finance receivables, compared with $511
million, or 1.80% of finance receivables at December 31, 2018.
"Our portfolio and business performed well despite some
remaining challenges in the Cat Power Finance portfolio," said
Dave Walton, president of Cat
Financial and vice president of the Financial Products Division of
Caterpillar Inc. "With relentless 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, has provided financial service excellence to
customers. The company offers a wide range of financing solutions
to customers and Cat® dealers for machines, engines, Solar® gas
turbines, marine vessels and various operational needs. 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.
FIRST-QUARTER 2019
VS. FIRST-QUARTER 2018
|
(ENDED MARCH 31,
EXCEPT TOTAL ASSETS)
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
CHANGE
|
Revenues
|
$
|
736
|
|
$
|
690
|
|
7%
|
Profit Before Income
Taxes
|
$
|
142
|
|
$
|
124
|
|
15%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
98
|
|
$
|
91
|
|
8%
|
Retail New Business
Volume
|
$
|
2,352
|
|
$
|
2,542
|
|
(7)%
|
Total Assets at March
31 and December 31, respectively
|
$
|
33,824
|
|
$
|
34,181
|
|
(1)%
|
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. 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 14, 2019 with the Securities and
Exchange Commission for the fiscal year ended December 31,
2018, 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