NASHVILLE, Tenn., Aug. 1, 2023 /PRNewswire/ -- Cat
Financial reported second-quarter 2023 revenues of $793 million, an increase of $125 million, or 19%, compared with $668 million in the second quarter of 2022.
Second-quarter 2023 profit was $150
million, an increase of $7
million, or 5%, compared with $143
million in the second quarter of 2022. The increase in
revenues was primarily due to a $120
million favorable impact from higher average financing
rates.
Second-quarter 2023 profit before income taxes was $205 million, an increase of $6 million, or 3%, compared with $199 million in the second quarter of 2022. The
increase was mainly due to a $44
million favorable impact from a lower provision for credit
losses and a $12 million increase in
net yield on average earning assets, partially offset by
unfavorable currency impacts of $27
million and an $18 million
increase in general, operating and administrative expenses.
The provision for income taxes reflected an estimated annual tax
rate of 26% for both the second quarter of 2023 and 2022.
During the second quarter of 2023, retail new business volume
was $3.15 billion, an increase of
$57 million, or 2%, compared with
$3.10 billion in the second quarter
of 2022. The increase was primarily driven by higher volume in
Mining, partially offset by lower volume in EAME and Latin America.
At the end of the second quarter of 2023, past dues at Cat
Financial were 2.15%, compared with 2.19% at the end of the second
quarter of 2022. Write-offs, net of recoveries, were $8 million for the second quarter of 2023,
compared with less than $1 million
for the second quarter of 2022. As of June
30, 2023, Cat Financial's allowance for credit losses
totaled $320 million, or 1.15% of
finance receivables, compared with $348
million, or 1.27% of finance receivables at March 31, 2023. The allowance for credit losses
at year-end 2022 was $346 million, or
1.29% of finance receivables.
"Cat Financial's second-quarter results reflected strong
portfolio performance," said Dave
Walton, President of Cat Financial and Senior Vice President
with responsibility for the Financial Products Division of
Caterpillar Inc. "The global Cat Financial team remains focused on
executing our strategy and 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. 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:
SECOND-QUARTER 2023
VS. SECOND-QUARTER 2022
(ENDED JUNE 30,
EXCEPT TOTAL ASSETS)
(Millions of
dollars)
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$
793
|
|
$
668
|
|
19 %
|
Profit Before Income
Taxes
|
$
205
|
|
$
199
|
|
3 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
150
|
|
$
143
|
|
5 %
|
Retail New Business
Volume
|
$
3,152
|
|
$
3,095
|
|
2 %
|
Total Assets at June 30
and December 31, respectively
|
$
33,022
|
|
$
31,957
|
|
3 %
|
|
|
SIX-MONTHS 2023 VS.
SIX-MONTHS 2022
(ENDED JUNE
30)
(Millions of
dollars)
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$ 1,561
|
|
$ 1,320
|
|
18 %
|
Profit Before Income
Taxes
|
$
409
|
|
$
392
|
|
4 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
299
|
|
$
286
|
|
5 %
|
Retail New Business
Volume
|
$ 5,616
|
|
$ 5,874
|
|
(4) %
|
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