Cat Financial Announces First-Quarter 2006 Results
April 24 2006 - 7:31AM
PR Newswire (US)
PEORIA, Ill., April 24 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record revenues of $657 million for the first quarter of 2006, an
increase of $114 million or 21 percent compared with the same
period in 2005. Profit after tax was a record $118 million, a $35
million or 42 percent increase over the first quarter of 2005. Of
the increase in revenues, $51 million resulted from the impact of
continued growth of finance receivables and operating leases
(earning assets), $50 million from the impact of higher interest
rates on new and existing finance receivables, $7 million higher
net gain on returned or repossessed equipment and a $6 million
increase in various other revenue items. On a pre-tax basis, profit
was up $49 million or 40 percent compared with the first quarter of
2005, principally due to an increase of $35 million in margin
(wholesale, retail finance, operating lease, and associated fee
revenues less interest expense and depreciation on assets leased to
others) from a $2,211 million increase in average earning assets
and improved net yield on earning assets. New retail financing of
$2.6 billion, an increase of $182 million or 7 percent over the
first quarter of 2005, was a record first quarter. The increase was
largely the result of an increase in earning assets in the North
America segment. Past dues over 30 days as of March 31, 2006 were
1.58 percent compared to 1.91 percent at March 31, 2005.
Write-offs, net of recoveries, were $8 million during the quarter
compared with $5 million for the first quarter of 2005. Caterpillar
Vice President and Cat Financial President Kent M. Adams said, "We
are off to a great start in 2006 with a record quarter for revenues
and net income, and the continued growth and strong performance of
our portfolio. Our results reflect the coordinated efforts of our
employees, the Caterpillar marketing organizations and the
Caterpillar dealers." For 25 years, Cat Financial, a wholly owned
subsidiary of Caterpillar Inc., has been providing a wide range of
financing alternatives for Caterpillar machinery and engines, Solar
(R) gas turbines and 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: FIRST QUARTER 2006 VS. FIRST QUARTER 2005
(ENDING MARCH 31) (Millions of dollars) 2006 2005 CHANGE Revenues
$657 $543 21% Net Profit $118 $83 42% New Retail Financing $2,625
$2,443 7% Total Assets $26,233 $24,543 7% DATASOURCE: Caterpillar
Financial Services Corporation CONTACT: Rusty L. Dunn, Corporate
Public Affairs of Caterpillar, +1-309-675-4803, Web site:
http://www.cat.com/
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