NASHVILLE, Tenn., Oct. 28, 2021 /PRNewswire/ -- Cat Financial
reported third-quarter 2021 revenues of $634
million, an increase of $36
million, or 6%, compared with the third quarter of 2020.
Third-quarter 2021 profit was $101
million, an increase of $53
million, or 110%, compared with the third quarter of
2020.
Third-quarter 2021 profit before income taxes was $131 million, an increase of $35 million, or 36%, compared with the third
quarter of 2020. The increase was primarily due to a $27 million favorable impact from returned or
repossessed equipment, an $11 million
decrease in provision for credit losses and a $10 million increase in net yield on average
earning assets. These favorable impacts were partially offset by a
$19 million increase in general,
operating and administrative expenses, mostly due to higher
short-term incentive compensation expense.
The provision for income taxes reflected an estimated annual tax
rate of 24% in the third quarter of 2021, compared with 33% in the
third quarter of 2020.
During the third quarter of 2021, retail new business volume was
$3.34 billion, an increase of
$742 million, or 29%, from the third
quarter of 2020. The increase was driven by higher volume across
all segments with the exception of a decrease in Asia/Pacific.
At the end of the third quarter of 2021, past dues were 2.41%,
compared with 3.81% at the end of the third quarter of 2020. Past
dues decreased across all portfolio segments as global markets
generally improved. Write-offs, net of recoveries, were
$76 million for the third quarter of
2021, compared with $125 million for
the third quarter of 2020. As of September
30, 2021, the allowance for credit losses totaled
$378 million, or 1.41% of finance
receivables, compared with $402
million, or 1.46% of finance receivables, at June 30, 2021. The allowance for credit
losses at year-end 2020 was $479
million, or 1.77% of finance receivables.
"Cat Financial delivered strong third-quarter results through
execution of our strategy," said Dave
Walton, president of Cat Financial and vice president with
responsibility for the Financial Products Division of Caterpillar
Inc. "With our ongoing focus on expanding our ability to serve
customers through financial services solutions, we remain
well-positioned to serve the needs of Caterpillar, Cat dealers and
our growing customer base worldwide."
About Cat Financial
Celebrating 40 years in 2021, 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 Cat®
dealers for machines, engines, Solar® 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, Africa and the Middle East. Visit cat.com to learn more about
Cat Financial.
STATISTICAL
HIGHLIGHTS:
|
|
THIRD-QUARTER 2021
VS. THIRD-QUARTER 2020
|
(ENDED SEPTEMBER
30, EXCEPT TOTAL ASSETS)
|
(Millions of
dollars)
|
|
|
2021
|
|
2020
|
|
CHANGE
|
Revenues
|
$
|
634
|
|
$
|
598
|
|
6%
|
Profit Before Income
Taxes
|
$
|
131
|
|
$
|
96
|
|
36%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
101
|
|
$
|
48
|
|
110%
|
Retail New Business
Volume
|
$
|
3,342
|
|
$
|
2,600
|
|
29%
|
Total Assets at
September 30 and December 31, respectively
|
$
|
31,724
|
|
$
|
31,991
|
|
(1)%
|
|
|
NINE-MONTHS 2021
VS. NINE-MONTHS 2020
|
(ENDED SEPTEMBER
30)
|
(Millions of
dollars)
|
|
|
2021
|
|
2020
|
|
CHANGE
|
Revenues
|
$
|
1,919
|
|
$
|
1,934
|
|
(1)%
|
Profit Before Income
Taxes
|
$
|
516
|
|
$
|
312
|
|
65%
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
383
|
|
$
|
197
|
|
94%
|
Retail New Business
Volume
|
$
|
9,675
|
|
$
|
7,650
|
|
26%
|
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 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