NASHVILLE, Tenn., July 25, 2017 /CNW/ -- Cat Financial
reported second-quarter 2017 revenues of $676 million, an increase of $17 million, or 3 percent, compared with the
second quarter of 2016. Second-quarter 2017 profit was $114 million, a $12
million, or 12 percent, increase from the second quarter of
2016.
The increase in revenues was due to a $14
million favorable impact from lending activity with
Caterpillar, a $13 million favorable
impact from higher average financing rates and an $8 million favorable impact from returned or
repossessed equipment. These favorable impacts were partially
offset by an $18 million unfavorable
impact from lower average earning assets.
Profit before income taxes was $164
million for the second quarter of 2017, compared with
$148 million for the second quarter
of 2016. The increase was primarily due to a $20 million decrease in provision for credit
losses, a $10 million favorable
impact from miscellaneous revenue items primarily due to lending
activity with Caterpillar and an $8
million favorable impact from returned or repossessed
equipment. These favorable impacts were partially offset by a
$12 million increase in general,
operating and administrative expenses primarily due to higher
incentive compensation and a $9
million unfavorable impact from lower average earning
assets.
The provision for income taxes reflects an estimated annual tax
rate of 30 percent in the second quarter of both 2017 and 2016.
During the second quarter of 2017, retail new business volume
was $2.69 billion, a decrease of
$367 million, or 12 percent, from the
second quarter of 2016. The decrease was primarily related to lower
volume in North America, Mining
and Latin America, partially
offset by an increase in Asia/Pacific.
At the end of the second quarter of 2017, past dues were 2.71
percent, compared with 2.93 percent at the end of the second
quarter of 2016. Write-offs, net of recoveries, were $26 million for the second quarter of 2017,
compared with $33 million for the
second quarter of 2016.
As of June 30, 2017, the allowance
for credit losses totaled $338
million, or 1.25 percent of finance receivables, compared
with $346 million, or 1.25 percent of
finance receivables at June 30,
2016. The allowance for credit losses at year-end 2016 was
$343 million, or 1.29 percent of
finance receivables.
"Cat Financial's solid business performance during the quarter
was driven by continued strong portfolio health," said Dave Walton, president of Cat Financial and vice
president with responsibility for the Financial Products Division
of Caterpillar Inc. "The global Cat Financial team remains
committed to helping Caterpillar customers and Cat dealers succeed
through financial services excellence."
For over 35 years, Cat Financial, a wholly owned subsidiary of
Caterpillar Inc., has been providing financial service excellence
to customers. The company offers a wide range of financing
alternatives to customers and Cat dealers for Cat machinery and
engines, Solar® gas turbines, and other equipment and marine
vessels. Cat Financial has offices and subsidiaries located
throughout North and South
America, Asia, Australia and Europe, with its headquarters in Nashville, Tennessee.
STATISTICAL HIGHLIGHTS:
SECOND-QUARTER
2017 VS. SECOND-QUARTER 2016
(ENDED JUNE
30)
(Millions of
dollars)
|
|
|
2017
|
2016
|
CHANGE
|
Revenues
|
$
|
676
|
$
|
659
|
3%
|
Profit Before Income
Taxes
|
$
|
164
|
$
|
148
|
11%
|
Profit
|
$
|
114
|
$
|
102
|
12%
|
Retail New Business
Volume
|
$
|
2,692
|
$
|
3,059
|
(12)%
|
Total
Assets
|
$
|
34,838
|
$
|
35,055
|
(1)%
|
|
|
SIX-MONTHS 2017
VS. SIX-MONTHS 2016
(ENDED JUNE
30)
(Millions of
dollars)
|
|
|
2017
|
2016
|
CHANGE
|
Revenues
|
$
|
1,338
|
$
|
1,302
|
3%
|
Profit Before Income
Taxes
|
$
|
331
|
$
|
293
|
13%
|
Profit
|
$
|
229
|
$
|
202
|
13%
|
Retail New Business
Volume
|
$
|
5,032
|
$
|
5,352
|
(6)%
|
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. Moreover, we do not assume
responsibility for the accuracy and completeness of those
statements. 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 15,
2017 with the Securities and Exchange Commission for the
fiscal year ended December 31, 2016 and similar sections in
our subsequent quarterly report on Form 10-Q, 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