NASHVILLE, Tenn., Jan. 28, 2022 /CNW/ -- Cat Financial reported
revenues of $2.56 billion for 2021,
an increase of $12 million compared
with 2020. Profit was $505 million
for 2021, a $212 million, or 72%,
increase from 2020.
Profit before income taxes was $695
million for 2021, a $261
million, or 60%, increase from 2020. The increase was
primarily due to a $196 million
decrease in provision for credit losses and a $100 million favorable impact from returned or
repossessed equipment, partially offset by a $96 million increase in general, operating and
administrative expenses, mostly due to higher short-term incentive
compensation expense.
The provision for income taxes reflected an annual tax rate of
26% for 2021, compared with 29% for 2020. The decrease in the
annual tax rate was primarily due to changes in the geographic mix
of profits.
During 2021, retail new business volume was $13.10 billion, an increase of $2.34 billion, or 22%, from 2020. The increase
was driven by higher volume across all segments with the exception
of a slight decrease in Caterpillar Power Finance.
At the end of 2021, past dues were 1.95%, compared with 3.49% at
the end of 2020. Past dues decreased across all portfolio segments
as global markets generally improved. Write-offs, net of
recoveries, were $205 million for
2021, compared with $222 million for
2020. As of December 31, 2021, the
allowance for credit losses totaled $337
million, or 1.22% of finance receivables, compared with
$479 million, or 1.77% of finance
receivables at December 31, 2020.
Fourth-Quarter 2021 vs. Fourth-Quarter 2020
Cat Financial reported fourth-quarter 2021 revenues of
$643 million, an increase of
$27 million, or 4%, compared with the
fourth quarter of 2020. Fourth-quarter 2021 profit was $122 million, a $26
million, or 27%, increase from the fourth quarter of
2020.
Fourth-quarter 2021 profit before income taxes was $179 million, a $57
million, or 47%, increase from the fourth quarter of 2020.
The increase was primarily due to a $53
million favorable impact from returned or repossessed
equipment and a $39 million decrease
in provision for credit losses, partially offset by a $33 million increase in general, operating and
administrative expenses, mostly due to higher short-term incentive
compensation expense.
The provision for income taxes reflected an effective tax rate
of 30% in the fourth quarter of 2021, compared with 20% in the
fourth quarter of 2020. The increase in the effective tax
rate was primarily due to changes in the geographic mix of
profits.
During the fourth quarter of 2021, retail new business volume
was $3.42 billion, an increase of
$313 million, or 10%, from the fourth
quarter of 2020. The increase was driven by higher volume across
all segments with the exception of a decrease in Asia/Pacific.
"We were pleased with the overall performance of our business
during 2021, especially the strong health of our global portfolio
and solid operational results delivered by our dedicated global
team," said Dave Walton, president
of Cat Financial and vice president with responsibility for the
Financial Products Division of Caterpillar Inc. "We continue to
focus on expanding our ability to serve our customers through
financial services solutions."
About Cat Financial
Celebrating 40 years in 2021, Cat Financial is a subsidiary of
Caterpillar, the world's leading manufacturer of construction and
mining equipment, diesel and natural gas engines, industrial gas
turbines, and diesel-electric locomotives. Cat Financial provides a
wide range of financing solutions to customers and Cat®
dealers for machines, engines, Solar® turbines, genuine
Cat parts and services. Headquartered in Nashville, Tennessee, Cat Financial serves
customers globally with offices and subsidiaries located throughout
North and South America,
Asia, Australia, Europe, Africa and the Middle East. Visit cat.com to learn more about
Cat Financial.
STATISTICAL
HIGHLIGHTS:
|
|
FOURTH-QUARTER
2021 VS. FOURTH-QUARTER 2020
|
(ENDED DECEMBER
31)
|
(Millions of
dollars)
|
|
|
2021
|
|
2020
|
|
CHANGE
|
Revenues
|
$ 643
|
|
$ 616
|
|
4 %
|
Profit Before Income
Taxes
|
$ 179
|
|
$ 122
|
|
47 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$ 122
|
|
$ 96
|
|
27 %
|
Retail New Business
Volume
|
$ 3,422
|
|
$ 3,109
|
|
10 %
|
Total
Assets
|
$ 32,387
|
|
$ 31,991
|
|
1 %
|
|
FULL-YEAR 2021 VS.
FULL-YEAR 2020
|
(ENDED DECEMBER
31)
|
(Millions of
dollars)
|
|
|
2021
|
|
2020
|
|
CHANGE
|
Revenues
|
$ 2,562
|
|
$ 2,550
|
|
— %
|
Profit Before Income
Taxes
|
$ 695
|
|
$ 434
|
|
60 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$ 505
|
|
$ 293
|
|
72 %
|
Retail New Business
Volume
|
$ 13,097
|
|
$ 10,759
|
|
22 %
|
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