NASHVILLE, Tenn., April 23, 2015 /PRNewswire/ -- Cat Financial
reported first-quarter 2015 revenues of $689
million, a decrease of $22
million, or 3 percent, compared with the first quarter of
2014. First-quarter 2015 profit after tax was $133 million, a $2
million, or 2 percent, increase from the first quarter of
2014.
The decrease in revenues was primarily due to a $13 million unfavorable impact from lower average
financing rates and a $7 million
unfavorable impact from lower average earning assets.
Profit before income taxes was $187
million for the first quarter of 2015, compared with
$182 million for the first quarter of
2014. The increase was primarily due to a $19 million decrease in provision for credit
losses, partially offset by a $7
million decrease in net yield on average earning assets and
a $3 million unfavorable net impact
from lower average earning assets.
The provision for income taxes reflects an estimated annual tax
rate of 28 percent in the first quarter of 2015, compared with 26
percent in the first quarter of 2014. The increase in the estimated
annual tax rate is primarily due to changes in the geographic mix
of pre-tax profits.
During the first quarter of 2015, retail new business volume was
$2.47 billion, a decrease of
$329 million, or 12 percent, from the
first quarter of 2014. The decrease was primarily related to lower
volume in Latin America,
Asia and Mining, partially offset
by increases in North America.
At the end of the first quarter of 2015, past dues were 3.08
percent, compared with 2.17 percent at the end of 2014. The
increase in past dues compared to year-end 2014 was primarily due
to the performance of the Latin American and Mining portfolios and
seasonality impacts. At the end of the first quarter of 2014, past
dues were 2.56 percent. Write-offs, net of recoveries, were
$12 million for the first quarter of
2015, compared with $39 million for
the first quarter of 2014.
As of March 31, 2015, Cat
Financial's allowance for credit losses totaled $392 million or 1.38 percent of net finance
receivables, compared with $401
million or 1.36 percent of net finance receivables at
year-end 2014. The allowance for credit losses as of March 31, 2014, was $384
million or 1.29 percent of net finance receivables.
"Our business continues to perform well, reflecting a stable
portfolio and a diversified funding platform," said Kent Adams, president of Cat Financial and vice
president with responsibility for the Financial Products Division
of Caterpillar Inc. "The global Cat Financial team delivered solid
results and we continue to be well positioned to serve Caterpillar,
Cat® dealers and customers worldwide."
For over 30 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:
|
|
FIRST-QUARTER 2015
VS. FIRST-QUARTER 2014
(ENDED MARCH
31)
(Millions of
dollars)
|
|
|
2015
|
2014
|
CHANGE
|
Revenues
|
$
|
689
|
|
$
|
711
|
|
(3)%
|
Profit Before Income
Taxes
|
$
|
187
|
|
$
|
182
|
|
3%
|
Profit After
Tax
|
$
|
133
|
|
$
|
131
|
|
2%
|
Retail New Business
Volume
|
$
|
2,466
|
|
$
|
2,795
|
|
(12)%
|
Total
Assets
|
$
|
34,341
|
|
$
|
35,542
|
|
(3)%
|
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
and disruptions in the global financial and credit markets, and
changes in laws and regulations (including regulations implemented
under the Dodd-Frank Wall Street Reform and Consumer Protection
Act) 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 for the
fiscal year ended December 31, 2014, that 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