Cat Financial Announces 2004 Year-End Results
January 27 2005 - 7:36AM
PR Newswire (US)
Cat Financial Announces 2004 Year-End Results PEORIA, Ill., Jan. 27
/PRNewswire-FirstCall/ -- Caterpillar Financial Services
Corporation (Cat Financial) today reported record revenues of $1.92
billion for 2004, an increase of $188 million or 11 percent
compared with 2003. Profit after tax was a record $287 million, a
$31 million or 12 percent increase from 2003. Of the increase in
revenues, $224 million resulted from the impact of continued growth
of finance receivables and leases, $16 million from a favorable
change in gain (loss) on sale of equipment returned from lease, and
$10 million from a favorable change in forward points on FX
contracts. These favorable items were partially offset by the $53
million impact of lower interest rates on new and existing finance
receivables, the absence of $9 million interest received in 2003
from Caterpillar Inc. related to prior years' tax audit
settlements, and an $8 million decrease in gain on sale of
receivables. Of the increase in profit, $101 million was due to
growth in earning assets and $9 million to net increases in other
revenue noted in the paragraph above, partially offset by higher
operating expenses of $39 million and $27 million from the decrease
in the interest rate spread. New retail financing was a record
$9.95 billion, an increase of $1.899 billion or 24 percent from
2003. The increase was primarily related to increased financing in
our North America segment. Past dues over 30 days were 1.6 percent
compared to 2.5 percent at the end of 2003. Write-offs, net of
recoveries, were $72 million for 2004 compared with $82 million for
2003. Caterpillar Vice President and Cat Financial President James
S. Beard said, "The strong growth in new retail financing
demonstrates our ability to respond to dealer and customer needs
for competitive financing and good service worldwide. We are also
pleased with the continued improvement in the credit quality of our
portfolio as delinquent accounts reached a six year low." Cat
Financial, a wholly-owned subsidiary of Caterpillar Inc. and 2003
recipient of the Malcolm Baldrige National Quality Award related to
its U.S. operations, provides a wide range of financing
alternatives for Caterpillar machinery and engines, Solar (R) gas
turbines as well as other equipment and marine vessels. The company
also extends loans to customers and dealers. Cat Financial has
offices and subsidiaries located throughout the Americas, Asia,
Australia, and Europe, with headquarters in Nashville, Tennessee.
STATISTICAL HIGHLIGHTS: FOURTH QUARTER 2004 VS. FOURTH QUARTER 2003
(ENDING DECEMBER 31) (Millions of dollars) 2004 2003 CHANGE
Revenues $524 $443 18% Net Profit $70 $67 4% New Retail Financing
$2,999 $2,272 32% Total Assets $23,332 $19,991 17% FULL YEAR 2004
VS. FULL YEAR 2003 (ENDING DECEMBER 31) (Millions of dollars) 2004
2003 CHANGE Revenues $1,924 $1,736 11% Net Profit $287 $256 12% New
Retail Financing $9,948 $8,049 24% DATASOURCE: Caterpillar
Financial Services Corporation CONTACT: Benjamin S. Cordani,
Corporate Public Affairs of Caterpillar Financial Services
Corporation, +1-309-675-5786, or Web site: http://www.cat.com/
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