Cat Financial Announces Third Quarter 2006 Results
October 20 2006 - 8:32AM
PR Newswire (US)
PEORIA, Ill., Oct. 20 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record revenues of $723 million for the third quarter of 2006, an
increase of $127 million, or 21 percent, compared with the same
quarter in 2005. Profit after tax (net profit) was $132 million, a
$45 million, or 52 percent, increase over the third quarter of
2005. Of the increase in revenues over the third quarter of 2005,
$59 million resulted from the impact of the growth in average
earning assets (finance receivables and operating leases) and $56
million from the impact of higher interest rates on new and
existing finance receivables. A $12 million increase in other
revenue was primarily due to the absence of a $7 million write-down
of a repossessed marine vessel in the third quarter of 2005. On a
pre-tax basis, profit was up $62 million, or 48 percent, compared
with the third quarter of 2005, principally due to an increase of
$44 million in margin (wholesale, retail finance, operating lease
and the associated fee revenues included in other revenues less
interest expense and depreciation on assets leased to others)
resulting from a $2.5 billion increase in average earning assets
and an improvement in the net yield on average earning assets. In
addition, profit increased due to the absence of the $7 million
write-down of the repossessed marine vessel and a $7 million
reversal of an investment- related income accrual in the third
quarter of 2005. New retail financing grew to $2.96 billion in the
third quarter of 2006. The increase of $32 million, or 1 percent,
over the third quarter of 2005 occurred primarily due to increased
new retail financing in Europe. Past dues over 30 days as of
September 30, 2006, were 1.89 percent compared to 1.65 percent as
of September 30, 2005. Write-offs, net of recoveries, were $11
million during the quarter compared with $14 million for the third
quarter of 2005. Caterpillar Inc. Vice President and Cat Financial
President Kent M. Adams said, "We are pleased to announce this
record quarter for revenues resulting from the continued growth of
average earning assets and a higher yield on new and existing
finance receivables. The results reflect the continued coordinated
efforts of the Caterpillar dealers, Caterpillar marketing
organizations and our employees." For 25 years, Cat Financial, a
wholly owned subsidiary of Caterpillar Inc. (Caterpillar), has been
providing a wide range of financing alternatives to customers and
Caterpillar dealers for Caterpillar machinery and engines, Solar
(R) gas turbines and other equipment and marine vessels. Cat
Financial has offices and subsidiaries located throughout the
Americas, Asia, Australia, and Europe, with headquarters in
Nashville, Tennessee. Statistical Highlights: Third Quarter 2006
Vs. Third Quarter 2005 (Ending September 30) (Millions of dollars)
2006 2005 CHANGE Revenues $723 $596 21% Net Profit $132 $87 52% New
Retail Financing $2,958 $2,926 1% Total Assets $27,103 $25,144 8%
Nine Months 2006 Vs. Nine Months 2005 (Ending September 30)
(Millions of dollars) 2006 2005 CHANGE Revenues $2,056 $1,726 19%
Net Profit $356 $260 37% New Retail Financing $8,784 $8,459 4%
DATASOURCE: Caterpillar Financial Services Corporation CONTACT:
Rusty L. Dunn, Corporate Public Affairs, of Caterpillar Financial
Services Corporation, +1-309-675-4803, Web site:
http://www.cat.com/
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