NASHVILLE, Tenn., Aug. 2, 2022
/CNW/ -- Cat Financial reported second-quarter 2022 revenues of
$668 million, an increase of
$22 million, or 3%, compared with
$646 million in the second quarter of
2021. Second-quarter 2022 profit was $143
million, an increase of $1
million, or 1%, compared with $142
million in the second quarter of 2021.
The increase in revenues was primarily due to a $20 million favorable impact from higher average
financing rates and an $18 million
favorable impact from returned or repossessed equipment, partially
offset by a $15 million unfavorable
impact from lower average earning assets.
Second-quarter 2022 profit before income taxes was $199 million, an increase of $10 million, or 5%, compared with $189 million in the second quarter of 2021. The
increase was primarily due to an $18
million favorable impact from returned or repossessed
equipment, partially offset by a $12
million increase in provision for credit losses.
The provision for income taxes reflected an estimated annual tax
rate of 26% in the second quarter of 2022, compared with 25% in the
second quarter of 2021.
During the second quarter of 2022, retail new business volume
was $3.10 billion, a decrease of
$429 million, or 12%, from the second
quarter of 2021. The decrease was driven by lower volume across all
segments with the exception of an increase in Latin America.
At the end of the second quarter of 2022, past dues were 2.19%,
compared with 2.58% at the end of the second quarter of 2021. The
decrease in past dues was mostly driven by the Caterpillar Power
Finance, EAME and North America
portfolios. Write-offs, net of recoveries, were less than
$1 million for the second quarter of
2022, compared with $54 million for
the second quarter of 2021. As of June 30,
2022, the allowance for credit losses totaled $376 million, or 1.41% of finance receivables,
compared with $357 million, or 1.29%
of finance receivables at March 31,
2022. The increase in allowance for credit losses included a
higher reserve for the Russia and
Ukraine portfolios. The allowance
for credit losses at year-end 2021 was $337
million, or 1.22% of finance receivables.
"Cat Financial's second-quarter results reflected strong
portfolio performance," said Dave
Walton, President of Cat Financial and Senior Vice President
with responsibility for the Financial Products Division of
Caterpillar Inc. "The global Cat Financial team continues to focus
on providing financial services solutions to Caterpillar customers
and dealers worldwide."
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines, and
diesel-electric locomotives. For more than 40 years, Cat Financial
has provided a wide range of financing solutions to customers
and Cat® dealers for machines, engines, Solar® gas
turbines, genuine Cat parts and services.
Headquartered in Nashville,
Tennessee, Cat Financial serves customers globally with
offices and subsidiaries located throughout North and South America, Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL
HIGHLIGHTS:
|
|
SECOND-QUARTER 2022
VS. SECOND-QUARTER 2021 (ENDED JUNE 30, EXCEPT TOTAL
ASSETS) (Millions of dollars)
|
|
|
2022
|
|
2021
|
|
CHANGE
|
Revenues
|
$
668
|
|
$
646
|
|
3 %
|
Profit Before Income
Taxes
|
$
199
|
|
$
189
|
|
5 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
143
|
|
$
142
|
|
1 %
|
Retail New Business
Volume
|
$ 3,095
|
|
$ 3,524
|
|
(12) %
|
Total Assets at June 30
and December 31, respectively
|
$
31,852
|
|
$
32,387
|
|
(2) %
|
|
SIX-MONTHS 2022 VS.
SIX-MONTHS 2021 (ENDED JUNE 30) (Millions of
dollars)
|
|
|
2022
|
|
2021
|
|
CHANGE
|
Revenues
|
$ 1,320
|
|
$ 1,285
|
|
3 %
|
Profit Before Income
Taxes
|
$
392
|
|
$
385
|
|
2 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
286
|
|
$
282
|
|
1 %
|
Retail New Business
Volume
|
$ 5,874
|
|
$ 6,333
|
|
(7) %
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "project," "intend," "could,"
"should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance and speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) disruptions
or volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(ii) failure to maintain our credit ratings and potential resulting
increases to our cost of borrowing and adverse effects on our cost
of funds, liquidity, competitive position and access to capital
markets; (iii) changes in interest rates, currency fluctuations or
market liquidity conditions; (iv) an increase in delinquencies,
repossessions or net losses of our customers; (v) residual values
of leased equipment; (vi) our compliance with financial and other
restrictive covenants in debt agreements; (vii) government monetary
or fiscal policies; (viii) political and economic risks, commercial
instability and events beyond our control in the countries in which
we operate; (ix) demand for Caterpillar products; (x) marketing,
operational or administrative support received from Caterpillar;
(xi) our ability to develop, produce and market quality products
that meet our customers' needs; (xii) information technology
security threats and computer crime; (xiii) alleged or actual
violations of trade or anti-corruption laws and regulations; (xiv)
new regulations or changes in financial services regulations; (xv)
additional tax expense or exposure; (xvi) changes in accounting
guidance; (xvii) the ongoing global coronavirus pandemic; and
(xviii) other factors described in more detail in Cat Financial's
Forms 10-Q, 10-K and other filings with the Securities and Exchange
Commission.
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SOURCE Cat Financial