Full-Year 2022 vs. Full-Year 2021
NASHVILLE, Tenn., Jan. 31,
2023 /PRNewswire/ -- Cat Financial reported revenues
of $2.73 billion for 2022, an
increase of $172 million, or 7%,
compared with $2.56 billion for 2021.
Profit was $535 million for 2022, an
increase of $30 million, or 6%,
compared with $505 million for
2021.
The increase in revenues was primarily due to a $151 million favorable impact from higher average
financing rates and a $55 million
favorable impact from returned or repossessed equipment, partially
offset by a $38 million unfavorable
impact from lower average earning assets.
Profit before income taxes was $731
million for 2022, an increase of $36
million, or 5%, compared with $695
million for 2021. The increase was primarily due to a
$55 million favorable impact from
returned or repossessed equipment, partially offset by a
$19 million unfavorable impact from
lower average earning assets.
The provision for income taxes reflected an annual tax rate of
26% for both 2022 and 2021.
During 2022, retail new business volume was $11.36 billion, a decrease of $1.74 billion, or 13%, compared with $13.10 billion for 2021. The decrease was driven
by lower volume across all segments with the exception of an
increase in Latin America.
At the end of 2022, past dues were 1.89%, compared with 1.95% at
the end of 2021. Write-offs, net of recoveries, were $46 million for 2022, compared with $205 million for 2021. As of December 31, 2022, the allowance for credit
losses totaled $346 million, or 1.29%
of finance receivables, compared with $337
million, or 1.22% of finance receivables at December 31, 2021.
Fourth-Quarter 2022 vs. Fourth-Quarter 2021
Cat Financial reported fourth-quarter 2022 revenues of
$724 million, an increase of
$81 million, or 13%, compared with
$643 million in the fourth quarter of
2021. Fourth-quarter 2022 profit was $118
million, a decrease of $4
million, or 3%, compared with $122
million in the fourth quarter of 2021.
The increase in revenues was primarily due to a $97 million favorable impact from higher average
financing rates, partially offset by a $14
million unfavorable impact from lower average earning
assets.
Fourth-quarter 2022 profit before income taxes was $151 million, a decrease of $28 million, or 16%, compared with $179 million in the fourth quarter of 2021. The
decrease was mainly due to a $37
million unfavorable impact from a higher provision for
credit losses, partially offset by a $12
million favorable impact from a decrease in general,
operating and administrative expenses.
During the fourth quarter of 2022, retail new business volume
was $2.76 billion, a decrease of
$666 million, or 19%, compared with
$3.42 billion in the fourth quarter
of 2021. The decrease was primarily driven by lower volume in the
North America, EAME, and
Asia/Pacific segments.
"We are very pleased with the performance of our business during
2022, especially the health of our global portfolio ending the year
with the lowest year-end past due percentage in over 15 years,"
said Dave Walton, President of Cat
Financial and Senior Vice President with responsibility for the
Financial Products Division of Caterpillar Inc. "The Cat Financial
team remains committed to supporting our customers and executing
our strategy."
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. Cat Financial provides a wide range of
financing solutions to customers and CatĀ® dealers for
machines, engines, SolarĀ® 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:
FULL-YEAR 2022 VS.
FULL-YEAR 2021
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
2022
|
2021
|
|
CHANGE
|
Revenues
|
$
|
2,734
|
$
|
2,562
|
|
7 %
|
Profit Before Income
Taxes
|
$
|
731
|
$
|
695
|
|
5 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
535
|
$
|
505
|
|
6 %
|
Retail New Business
Volume
|
$
|
11,355
|
$
|
13,097
|
|
(13) %
|
Total Assets
|
$
|
31,957
|
$
|
32,387
|
|
(1) %
|
FOURTH-QUARTER 2022
VS. FOURTH-QUARTER 2021
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
2022
|
2021
|
|
CHANGE
|
Revenues
|
$
|
724
|
$
|
643
|
|
13 %
|
Profit Before Income
Taxes
|
$
|
151
|
$
|
179
|
|
(16) %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
118
|
$
|
122
|
|
(3) %
|
Retail New Business
Volume
|
$
|
2,756
|
$
|
3,422
|
|
(19) %
|
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; (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 duration and geographic spread of, business disruptions caused
by, and the overall global economic impact of, the COVID-19
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