Cat Financial Announces Second-Quarter 2005 Results
July 21 2005 - 8:59AM
PR Newswire (US)
Cat Financial Announces Second-Quarter 2005 Results PEORIA, Ill.,
July 21 /PRNewswire-FirstCall/ -- Caterpillar Financial Services
Corporation (Cat Financial) today reported record revenues of $587
million, an increase of $120 million or 26 percent compared with
second quarter 2004. Profit after tax was a record $90 million, a
$27 million or 43 percent increase over second quarter 2004. Of the
increase in revenues, $69 million resulted from the impact of
continued growth of finance receivables and operating leases
(earning assets) and $39 million from the impact of higher interest
rates on new and existing finance receivables. On a pre-tax basis,
profit was up $41 million, principally due to $33 million from
growth in earning assets, $12 million from a decrease in the
provision for credit losses due to improved portfolio health, and
$6 million from an increased gain on sale of equipment returned
from lease, partially offset by $11 million from higher operating
expenses and $6 million from the decrease in the interest rate
spread. New retail financing was a record $3.27 billion, an
increase of $681 million or 26 percent from the same period one
year ago. The increase was primarily related to increased financing
in our North America and Asia- Pacific segments. Past dues over 30
days at the end of the period were 2.08 percent compared to 2.57
percent at the end of the same period one-year ago. Write-offs, net
of recoveries, were $3 million during the quarter compared with $16
million for the second quarter of 2004. Caterpillar Vice President
and Cat Financial President Kent M. Adams said, "We are pleased
with the continued growth in our business as well as the reduction
in past dues and write-offs. Our efficiency measured by managed
assets per employee continues to improve reflecting the benefits of
the investments we have made in our people and technology." 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 2005 VS. SECOND QUARTER 2004 (ENDING JUNE 30)
(Millions of dollars) 2005 2004 CHANGE Revenues $587 $467 26% Net
Profit $90 $63 43% New Retail Financing $3,268 $2,587 26% Total
Assets $24,229 $21,145 15% FIRST SIX MONTHS 2005 VS. FIRST SIX
MONTHS 2004 (ENDING JUNE 30) (Millions of dollars) 2005 2004 CHANGE
Revenues $1,130 $924 22% Net Profit $173 $135 28% New Retail
Financing $5,711 $4,557 25% DATASOURCE: Caterpillar Financial
Services Corporation CONTACT: Benjamin S. Cordani, Corporate Public
Affairs of Caterpillar Financial Services Corporation,
+1-309-675-5786, Web site: http://www.cat.com/
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