Cat Financial Announces Second-Quarter 2004 Results PEORIA, Ill., July 22 /PRNewswire-FirstCall/ -- Caterpillar Financial Services Corporation (Cat Financial) today reported record revenues of $467 million, an increase of $22 million or 5 percent compared with second quarter 2003. Profit after tax was $63 million, an $8 million or 11 percent decrease from second quarter 2003. Of the increase in revenues, $54 million resulted from the impact of continued growth of finance receivables and leases, partially offset by a $26 million impact of lower interest rates on new and existing finance receivables and an $11 million decrease in gain on securitized receivables. Of the decrease in profit, $16 million was due to higher general, operating, and administrative expenses primarily related to increased labor costs and investment in new technology to gain global operational efficiencies, an increase in franchise tax accrual, and the absence of a litigation/insurance accrual reversal. There was an additional $9 million decrease due to the lower gain on publicly securitized finance receivables. These items were partially offset by a $23 million increase in profit due to growth in earning assets. New retail financing was a record $2.59 billion, an increase of $691 million or 36 percent from the same period one year ago. The increase was primarily related to increased financing in our North America segment. Past dues over 30 days were 2.6 percent compared to 2.9 percent at the end of the same period one year ago. Write-offs, net of recoveries, were $16 million during the quarter compared with $20 million for the second quarter of 2003. Caterpillar Vice President and Cat Financial President James S. Beard said, "We are pleased to see a continued reduction in past dues and bad debts, as well as gains in efficiencies as measured by managed portfolio per employee. Thanks to our process improvements and unique technology we have maintained excellent service levels to dealers and customers during a period of unprecedented increases in new business." 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 2004 VS. SECOND QUARTER 2003 (ENDING JUNE 30) (Millions of dollars) 2004 2003 CHANGE Revenues $467 $445 5% Net Profit $63 $71 (11%) New Retail Financing $2,587 $1,896 36% Total Assets $20,913 $17,989 16% FIRST SIX MONTHS 2004 VS. FIRST SIX MONTHS 2003 (ENDING JUNE 30) (Millions of dollars) 2004 2003 CHANGE Revenues $924 $848 9% Net Profit $135 $122 11% New Retail Financing $4,557 $3,670 24% DATASOURCE: Caterpillar Inc. CONTACT: Kelly Wojda of Caterpillar, Corporate Public Affairs, +1-309-675-1307, Web site: http://www.cat.com/

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