NASHVILLE, Tenn., July 24, 2014 /PRNewswire/ -- Cat Financial
reported second-quarter 2014 revenues of $728 million, an increase of $34 million, or 5 percent, compared with the
second quarter of 2013. Second-quarter 2014 profit after tax was
$146 million, a $35 million, or 32 percent, increase from the
second quarter of 2013.
The increase in revenues was primarily due to a $36 million favorable impact from higher average
earning assets.
Profit before income taxes was $206
million for the second quarter of 2014, compared with
$158 million for the second quarter
of 2013. The increase was primarily due to the absence of a
$23 million currency loss in the
second quarter of 2013, a $17 million
favorable impact from higher average earning assets and a
$16 million improvement on net yield
on average earning assets.
The provision for income taxes reflects an estimated annual tax
rate of 27 percent for the second quarters of both 2014 and
2013.
During the second quarter of 2014, retail new business volume
was $3.44 billion, an increase of
$56 million, or 2 percent, from the
second quarter of 2013. The increase was primarily related to
increases in sales of Cat equipment in North America, partially offset by decreases
in Mining.
At the end of the second quarter of 2014, past dues were 2.63
percent, compared with 2.44 percent at the end of the first quarter
of 2014, 2.37 percent at the end of 2013 and 2.64 percent at the
end of the second quarter of 2013. The increase in past dues from
the first quarter of 2014 and the end of 2013 reflects higher past
dues in the Latin American, Asia/Pacific and European portfolios.
Write-offs, net of recoveries, were $19
million for the second quarter of 2014, compared with
$27 million for the second quarter of
2013.
As of June 30, 2014, Cat
Financial's allowance for credit losses totaled $387 million or 1.27 percent of net finance
receivables, compared with $373
million or 1.25 percent of net finance receivables as of
March 31, 2014, $378 million or 1.30 percent of net finance
receivables at year-end 2013 and $422
million or 1.46 percent of net finance receivables as of
June 30, 2013.
"We are pleased with our continued solid performance in the
second quarter driven by the continued growth in earning assets,"
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 remains focused on helping Caterpillar customers and Cat
dealers succeed through financial services excellence."
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:
SECOND-QUARTER
2014 VS. SECOND-QUARTER 2013 (ENDED JUNE
30) (Millions of dollars)
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
CHANGE
|
Revenues
|
$
|
728
|
|
|
$
|
694
|
|
|
5
|
%
|
Profit Before Income
Taxes
|
$
|
206
|
|
|
$
|
158
|
|
|
30
|
%
|
Profit After
Tax
|
$
|
146
|
|
|
$
|
111
|
|
|
32
|
%
|
Retail New Business
Volume
|
$
|
3,443
|
|
|
$
|
3,387
|
|
|
2
|
%
|
Total
Assets
|
$
|
36,487
|
|
|
$
|
35,039
|
|
|
4
|
%
|
SIX-MONTHS 2014
VS. SIX-MONTHS 2013 (ENDED JUNE 30) (Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
CHANGE
|
Revenues
|
$
|
1,441
|
|
|
$
|
1,374
|
|
|
5
|
%
|
Profit Before Income
Taxes
|
$
|
394
|
|
|
$
|
345
|
|
|
14
|
%
|
Profit After
Tax
|
$
|
282
|
|
|
$
|
252
|
|
|
12
|
%
|
Retail New Business
Volume
|
$
|
6,238
|
|
|
$
|
6,284
|
|
|
(1)
|
%
|
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, 2013 and similar sections in
our quarterly reports on Form 10-Q, 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.
SOURCE Cat Financial