NASHVILLE, Tenn., Oct. 27,
2022 /PRNewswire/ -- Cat Financial reported
third-quarter 2022 revenues of $690
million, an increase of $56
million, or 9%, compared with $634
million in the third quarter of 2021. Third-quarter 2022
profit was $131 million, an increase
of $30 million, or 30%, compared with
$101 million in the third quarter of
2021. The increase in revenues was primarily due to a $63 million favorable impact from higher average
financing rates.
Third-quarter 2022 profit before income taxes was $188 million, an increase of $57 million, or 44%, compared with $131 million in the third quarter of 2021. The
increase was mainly due to a $75
million favorable impact from a lower provision for credit
losses, partially offset by a $25
million impact from mark-to-market adjustments on derivative
contracts.
The provision for income taxes reflected an estimated annual tax
rate of 27% in the third quarter of 2022, compared with 24% in the
third quarter of 2021.
During the third quarter of 2022, retail new business volume was
$2.73 billion, a decrease of
$617 million, or 18%, from the third
quarter of 2021. The decrease was driven by lower volume across all
segments with the exception of an increase in Latin America.
At the end of the third quarter of 2022, past dues were 2.00%,
compared with 2.41% at the end of the third quarter of 2021. Past
dues decreased across all our portfolio segments, with the
exception of an increase in Latin
America. Write-offs, net of recoveries, were $13 million for the third quarter of 2022,
compared with $76 million for the
third quarter of 2021. As of September 30,
2022, the allowance for credit losses totaled $339 million, or 1.30% of finance receivables,
compared with $376 million, or 1.41%
of finance receivables at June 30,
2022. The allowance for credit losses at year-end 2021 was
$337 million, or 1.22% of finance
receivables.
"The Cat Financial team delivered another quarter of strong
results. Our portfolio continues to perform well with historically
low past dues," said Dave Walton,
President of Cat Financial and Senior Vice President with
responsibility for the Financial Products Division of Caterpillar
Inc. "Our team remains focused on providing financial services
solutions to Caterpillar customers and dealers worldwide."
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. For more than 40 years, Cat Financial
has provided a wide range of financing solutions to customers
and Cat® dealers for machines, engines, Solar® gas
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:
THIRD-QUARTER 2022
VS. THIRD-QUARTER 2021
(ENDED SEPTEMBER 30,
EXCEPT TOTAL ASSETS)
(Millions of
dollars)
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
CHANGE
|
Revenues
|
$
690
|
|
$
634
|
|
9 %
|
Profit Before Income
Taxes
|
$
188
|
|
$
131
|
|
44 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
131
|
|
$
101
|
|
30 %
|
Retail New Business
Volume
|
$
2,725
|
|
$
3,342
|
|
(18) %
|
Total Assets at
September 30 and December 31, respectively
|
$
31,483
|
|
$
32,387
|
|
(3) %
|
|
|
NINE-MONTHS 2022 VS.
NINE-MONTHS 2021
(ENDED SEPTEMBER
30)
(Millions of
dollars)
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
CHANGE
|
Revenues
|
$
2,010
|
|
$
1,919
|
|
5 %
|
Profit Before Income
Taxes
|
$
580
|
|
$
516
|
|
12 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
417
|
|
$
383
|
|
9 %
|
Retail New Business
Volume
|
$
8,599
|
|
$
9,675
|
|
(11) %
|
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 or the liquidity of our customers, dealers and suppliers;
(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.
View original
content:https://www.prnewswire.com/news-releases/cat-financial-announces-third-quarter-2022-results-301661049.html
SOURCE Cat Financial