NASHVILLE, Tenn., April 29, 2021 /CNW/ -- Cat Financial reported
first-quarter 2021 revenues of $639
million, a decrease of $56
million, or 8%, compared with the first quarter of 2020.
First-quarter 2021 profit was $140
million, a $50 million, or
56%, increase from the first quarter of 2020.
The decrease in revenues was primarily due to a $40 million unfavorable impact from lower average
financing rates and a $19 million
unfavorable impact from lower average earning assets.
First-quarter 2021 profit before income taxes was $196 million, a $69
million, or 54%, increase from the first quarter of 2020.
The increase was primarily due to a $71
million decrease in provision for credit losses, partially
offset by a $13 million increase in
general, operating and administrative expenses, primarily due to
higher incentive compensation. The impact of lower average
financing rates was offset by lower interest expense.
The provision for income taxes reflected an estimated annual tax
rate of 27% in the first quarter of 2021, compared with 26% in the
first quarter of 2020.
During the first quarter of 2021, retail new business volume was
$2.81 billion, an increase of
$497 million, or 21%, from the first
quarter of 2020. The increase was driven by higher volume in
Asia/Pacific, North America, Mining and EAME, partially
offset by a decrease in Latin
America.
At the end of the first quarter of 2021, past dues were 2.90%,
compared with 4.13% at the end of the first quarter of 2020. Past
dues decreased across all portfolio segments as global markets
generally improved. Write-offs, net of recoveries, were
$24 million for the first quarter of
2021, compared with $30 million for
the first quarter of 2020. As of March 31,
2021, the allowance for credit losses totaled $441 million, or 1.64% of finance receivables,
compared with $479 million, or 1.77%
of finance receivables at December 31,
2020.
"Our business delivered strong results in the first quarter,
reflecting an improved economy and the Cat Financial team's focus
on executing the strategy," said Dave
Walton, president of Cat Financial and vice president with
responsibility for the Financial Products Division of Caterpillar
Inc. "Cat Financial remains committed to serve Caterpillar
customers and dealers worldwide through financial services
solutions."
For 40 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.
STATISTICAL
HIGHLIGHTS:
|
|
FIRST-QUARTER 2021
VS. FIRST-QUARTER 2020
|
(ENDED MARCH 31,
EXCEPT TOTAL ASSETS)
|
(Millions of
dollars)
|
|
|
2021
|
|
2020
|
|
CHANGE
|
Revenues
|
$
|
639
|
|
$
|
695
|
|
(8)%
|
Profit Before Income
Taxes
|
$
|
196
|
|
$
|
127
|
|
54%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
140
|
|
$
|
90
|
|
56%
|
Retail New Business
Volume
|
$
|
2,809
|
|
$
|
2,312
|
|
21%
|
Total Assets at March
31 and December 31, respectively
|
$
|
32,083
|
|
$
|
31,991
|
|
—%
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "project," "intend," "could,"
"should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance and speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) disruptions
or volatility in global financial markets limiting our sources of
liquidity; (ii) failure to maintain our credit ratings and
potential resulting increases to our cost of borrowing and adverse
effects on our cost of funds, liquidity, competitive position and
access to capital markets; (iii) changes in interest rates,
currency fluctuations or market liquidity conditions; (iv) an
increase in delinquencies, repossessions or net losses of our
customers; (v) residual values of leased equipment; (vi) our
compliance with financial and other restrictive covenants in debt
agreements; (vii) government monetary or fiscal policies; (viii)
political and economic risks, commercial instability and events
beyond our control in the countries in which we operate; (ix)
demand for Caterpillar products; (x) marketing, operational or
administrative support received from Caterpillar; (xi) our ability
to develop, produce and market quality products that meet our
customers' needs; (xii) information technology security threats and
computer crime; (xiii) alleged or actual violations of trade or
anti-corruption laws and regulations; (xiv) new regulations or
changes in financial services regulations; (xv) additional tax
expense or exposure; (xvi) changes in accounting guidance; (xvii)
the ongoing global coronavirus pandemic; and (xviii) other factors
described in more detail in Cat Financial's Forms 10-Q, 10-K and
other filings with the Securities and Exchange Commission.
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SOURCE Cat Financial