NASHVILLE, Tenn., Oct. 31,
2023 /CNW/ -- Cat Financial reported third-quarter
2023 revenues of $846 million, an
increase of $156 million, or 23%,
compared with $690 million in the
third quarter of 2022. The increase in revenues was primarily due
to a $118 million favorable impact
from higher average financing rates. Third-quarter 2023 profit was
$98 million, a decrease of
$33 million, or 25%, compared with
$131 million in the third quarter of
2022.
Third-quarter 2023 profit before income taxes was $170 million, a decrease of $18 million, or 10%, compared with $188 million in the third quarter of 2022. The
decrease was mainly due to a $51
million unfavorable impact from a higher provision for
credit losses mostly driven by the absence of prior year reserve
releases, partially offset by a $24
million favorable impact from mark-to-market adjustments on
derivative contracts.
The provision for income taxes reflected an estimated annual tax
rate of 26% for the third quarter of 2023 compared with 27% in the
third quarter of 2022. In addition, a discrete tax expense of
$27 million was recorded in the third
quarter of 2023 for the repatriation of non-U.S. earnings and the
change in the reinvestment position of a non-U.S. subsidiary.
During the third quarter of 2023, retail new business volume was
$2.89 billion, an increase of
$169 million, or 6%, compared with
$2.73 billion in the third quarter of
2022. The increase was primarily driven by higher volume in
North America.
At the end of the third quarter of 2023, past dues at Cat
Financial were 1.96%, compared with 2.00% at the end of the third
quarter of 2022. Write-offs, net of recoveries, were $9 million for the third quarter of 2023,
compared with $13 million for the
third quarter of 2022. As of September 30,
2023, Cat Financial's allowance for credit losses totaled
$340 million, or 1.23% of finance
receivables, compared with $320
million, or 1.15% of finance receivables at June 30, 2023. The allowance for credit losses at
year-end 2022 was $346 million, or
1.29% of finance receivables.
"Cat Financial delivered another solid quarter with strong
portfolio performance reflected in historically low past dues and
write-offs," said Dave Walton,
President of Cat Financial and Senior Vice President with
responsibility for the Financial Products Division of Caterpillar
Inc. "The global Cat Financial team remains focused on executing
our strategy and supporting our customers and dealers
worldwide."
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. 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 and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL HIGHLIGHTS:
THIRD-QUARTER 2023
VS. THIRD-QUARTER 2022
(ENDED SEPTEMBER 30,
EXCEPT TOTAL ASSETS)
(Millions of
dollars)
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$
846
|
|
$
690
|
|
23 %
|
Profit Before Income
Taxes
|
$
170
|
|
$
188
|
|
(10) %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
98
|
|
$
131
|
|
(25) %
|
Retail New Business
Volume
|
$ 2,894
|
|
$ 2,725
|
|
6 %
|
Total Assets at
September 30 and December 31, respectively
|
$
32,464
|
|
$
31,957
|
|
2 %
|
|
|
NINE-MONTHS 2023 VS.
NINE-MONTHS 2022
(ENDED SEPTEMBER
30)
(Millions of
dollars)
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$ 2,407
|
|
$ 2,010
|
|
20 %
|
Profit Before Income
Taxes
|
$
579
|
|
$
580
|
|
— %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
397
|
|
$
417
|
|
(5) %
|
Retail New Business
Volume
|
$ 8,510
|
|
$ 8,599
|
|
(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)
catastrophic events, including global pandemics such as the
COVID-19 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