NASHVILLE, Tenn., April 28,
2022 /CNW/ -- Cat Financial reported first-quarter
2022 revenues of $652 million, an
increase of $13 million, or 2%,
compared with the first quarter of 2021. First-quarter 2022 profit
was $143 million, a $3 million, or 2%, increase from the first
quarter of 2021.
The increase in revenues was primarily due to a $36 million favorable impact from returned or
repossessed equipment, partially offset by a $29 million unfavorable impact from lower average
financing rates.
First-quarter 2022 profit before income taxes was $193 million, a $3
million, or 2%, decrease from the first quarter of 2021. The
decrease was primarily due to a $37
million increase in provision for credit losses, partially
offset by a $36 million favorable
impact from returned or repossessed equipment. The impact of
lower average financing rates was mostly offset by lower interest
expense.
The provision for income taxes reflected an estimated annual tax
rate of 25% in the first quarter of 2022, compared with 27% in the
first quarter of 2021.
During the first quarter of 2022, retail new business volume was
$2.78 billion, a decrease of
$30 million, or 1%, from the first
quarter of 2021. The decrease was primarily driven by lower volume
in Asia/Pacific and Mining,
partially offset by increases in North
America and Latin
America.
At the end of the first quarter of 2022, past dues were 2.05%,
compared with 2.90% at the end of the first quarter of 2021. The
decrease in past dues was mostly driven by the North America, Caterpillar Power Finance and
EAME portfolios. Write-offs, net of recoveries, were $8 million for the first quarter of 2022,
compared with $24 million for the
first quarter of 2021. As of March 31,
2022, the allowance for credit losses totaled $357 million, or 1.29% of finance receivables,
compared with $337 million, or 1.22%
of finance receivables at December 31,
2021. The increase in allowance for credit losses included a
higher reserve for the Russia and
Ukraine portfolios.
"The Cat Financial team continues to focus on execution of our
strategy and supporting our customers with financial services
solutions," said Dave Walton,
president of Cat Financial and vice president with responsibility
for the Financial Products Division of Caterpillar Inc. "With
strong portfolio health, we continue to deliver solid operational
results."
About Cat Financial
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. For more than 40 years,
Cat Financial has provided a wide range of financing
solutions to customers and Cat® dealers for machines, engines,
Solar® gas 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 and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL
HIGHLIGHTS:
|
|
FIRST-QUARTER 2022
VS. FIRST-QUARTER 2021
(ENDED MARCH 31,
EXCEPT TOTAL ASSETS)
(Millions of
dollars)
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
CHANGE
|
Revenues
|
$
652
|
|
$
639
|
|
2 %
|
Profit Before Income
Taxes
|
$
193
|
|
$
196
|
|
(2)%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
143
|
|
$
140
|
|
2 %
|
Retail New Business
Volume
|
$
2,779
|
|
$
2,809
|
|
(1)%
|
Total Assets at March
31 and December 31, respectively
|
$
32,595
|
|
$
32,387
|
|
1 %
|
|
|
|
|
|
|
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 or the liquidity of our customers, dealers and suppliers;
(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