Cat Financial Announces Second-Quarter 2004 Results
July 22 2004 - 8:37AM
PR Newswire (US)
Cat Financial Announces Second-Quarter 2004 Results PEORIA, Ill.,
July 22 /PRNewswire-FirstCall/ -- Caterpillar Financial Services
Corporation (Cat Financial) today reported record revenues of $467
million, an increase of $22 million or 5 percent compared with
second quarter 2003. Profit after tax was $63 million, an $8
million or 11 percent decrease from second quarter 2003. Of the
increase in revenues, $54 million resulted from the impact of
continued growth of finance receivables and leases, partially
offset by a $26 million impact of lower interest rates on new and
existing finance receivables and an $11 million decrease in gain on
securitized receivables. Of the decrease in profit, $16 million was
due to higher general, operating, and administrative expenses
primarily related to increased labor costs and investment in new
technology to gain global operational efficiencies, an increase in
franchise tax accrual, and the absence of a litigation/insurance
accrual reversal. There was an additional $9 million decrease due
to the lower gain on publicly securitized finance receivables.
These items were partially offset by a $23 million increase in
profit due to growth in earning assets. New retail financing was a
record $2.59 billion, an increase of $691 million or 36 percent
from the same period one year ago. The increase was primarily
related to increased financing in our North America segment. Past
dues over 30 days were 2.6 percent compared to 2.9 percent at the
end of the same period one year ago. Write-offs, net of recoveries,
were $16 million during the quarter compared with $20 million for
the second quarter of 2003. Caterpillar Vice President and Cat
Financial President James S. Beard said, "We are pleased to see a
continued reduction in past dues and bad debts, as well as gains in
efficiencies as measured by managed portfolio per employee. Thanks
to our process improvements and unique technology we have
maintained excellent service levels to dealers and customers during
a period of unprecedented increases in new business." Cat
Financial, a wholly-owned subsidiary of Caterpillar Inc., 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:
SECOND QUARTER 2004 VS. SECOND QUARTER 2003 (ENDING JUNE 30)
(Millions of dollars) 2004 2003 CHANGE Revenues $467 $445 5% Net
Profit $63 $71 (11%) New Retail Financing $2,587 $1,896 36% Total
Assets $20,913 $17,989 16% FIRST SIX MONTHS 2004 VS. FIRST SIX
MONTHS 2003 (ENDING JUNE 30) (Millions of dollars) 2004 2003 CHANGE
Revenues $924 $848 9% Net Profit $135 $122 11% New Retail Financing
$4,557 $3,670 24% DATASOURCE: Caterpillar Inc. CONTACT: Kelly Wojda
of Caterpillar, Corporate Public Affairs, +1-309-675-1307, Web
site: http://www.cat.com/
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