NASHVILLE, Tenn., April 27,
2023 /PRNewswire/ -- Cat Financial reported
first-quarter 2023 revenues of $768
million, an increase of $116
million, or 18%, compared with $652
million in the first quarter of 2022. First-quarter 2023
profit was $149 million, an increase
of $6 million, or 4%, compared with
$143 million in the first quarter of
2022. The increase in revenues was primarily due to a $123 million favorable impact from higher average
financing rates.
First-quarter 2023 profit before income taxes was $204 million, an increase of $11 million, or 6%, compared with $193 million in the first quarter of 2022. The
increase was mainly due to a $20
million increase in net yield on average earning assets and
an $18 million favorable impact from
a lower provision for credit losses. These favorable impacts were
partially offset by a $13 million
unfavorable impact from currency exchange losses and a $9 million unfavorable impact from mark-to-market
adjustments on derivative contracts.
The provision for income taxes reflected an estimated annual tax
rate of 26% in the first quarter of 2023, compared with 25% in the
first quarter of 2022.
During the first quarter of 2023, retail new business volume was
$2.46 billion, a decrease of
$315 million, or 11%, compared with
$2.78 billion in the first quarter of
2022. The decrease was primarily driven by lower volume in
North America and Asia/Pacific, partially offset by increases in
Power Finance and Mining.
At the end of the first quarter of 2023, past dues at Cat
Financial were 2.00%, compared with 2.05% at the end of the first
quarter of 2022. Write-offs, net of recoveries, were $10 million for the first quarter of 2023,
compared with $8 million for the
first quarter of 2022. As of March 31,
2023, Cat Financial's allowance for credit losses totaled
$348 million, or 1.27% of finance
receivables, compared with $346
million, or 1.29% of finance receivables at December 31, 2022.
"Cat Financial delivered strong results driven by a continued
focus on the execution of our strategy and strong portfolio
health," said Dave Walton, President
of Cat Financial and Senior Vice President with responsibility for
the Financial Products Division of Caterpillar Inc. "The Cat
Financial team remains committed to serving our customers worldwide
through financial services solutions."
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. 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 and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL HIGHLIGHTS:
FIRST-QUARTER 2023
VS. FIRST-QUARTER 2022
(ENDED MARCH 31,
EXCEPT TOTAL ASSETS)
(Millions of
dollars)
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$
768
|
|
$
652
|
|
18 %
|
Profit Before Income
Taxes
|
$
204
|
|
$
193
|
|
6 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
149
|
|
$
143
|
|
4 %
|
Retail New Business
Volume
|
$ 2,464
|
|
$ 2,779
|
|
(11) %
|
Total Assets at March
31 and December 31, respectively
|
$
32,206
|
|
$
31,957
|
|
1 %
|
|
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)
catastrophic events, including global pandemics such as the
COVID-19 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